AEV nets P10.3B

Conglomerate Aboitiz Equity Ventures Inc. (AEV) booked a six-month net profit of P10.3 billion, down by 2 percent year-on-year mostly due to foreign exchange losses that curbed the earnings of its flagship power business.

For the second quarter alone, AEV’s net profit increased by 3 percent year-on-year to P5.6 billion. Excluding non-recurring items, core net profit for the quarter rose by 2 percent year-on-year to P5.6 billion.

In the first semester, core net profit increased by 3 percent year-on-year to P10.8 billion. AEV recognized non-recurring losses of P495 million for the period – versus last year’s gain of P100 million – coming from foreign exchange losses arising from the revaluation of dollar denominated loans.

Aboitiz Power Corp.’s income contribution to AEV decreased by 2 percent year-on-year to P7.5 billion. On a stand-alone basis, AboitizPower recorded an increase of 6 percent year-on-year in core net income for the half to P10.5 billion.

Some foreign exchange losses resulting from restatement of dollar-denominated debt were recognized. These non-recurring items brought down AboitizPower’s net income for the first half by 2 percent year-on-year to P9.7 billion.

Excluding non-recurring items, both Aboitiz Power’s generation and distribution businesses grew earnings contribution for the period.

Meanwhile, banking arm Union Bank of the Philippines’ grew its income contribution by 9 percent year-on-year to P2.1 billion as the bank generated more earnings from its lending activities.

The food businesses under Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte Ltd. saw a 19-percent drop in income contribution for the first half to P717 million. This was as higher raw material and operating costs gnawed on earnings from the feeds and flour businesses.

AEV’s real estate segment arm under AboitizLand and other units registered a combined net income of P202 million, 138 percent higher year-on-year, on higher sales booked by the industrial business unit alongside improved sales and construction progress by the residential business unit.

Republic Cement and Building Materials Inc.’s (Republic) income contribution to AEV decreased by 43 percent year-on-year to P494 million. This unit reported cement demand slowdown in the first half relative to the same period last year when the election season boosted cement sales.