Conglomerate Aboitiz Equity Ventures (AEV) saw a 276-percent year-on-year first quarter net profit growth to P7.6 billion, driven by the sharp earnings rebound across its power, banking, food, real estate and infrastructure businesses.
Excluding non-recurring items, AEV’s core net income for the first three months of 2021 amounted to P7.8 billion, up by 243 percent year-on-year, the group disclosed to the Philippine Stock Exchange on Wednesday.
“The first quarter of 2021 is solid proof that the Aboitiz Group is already making headway in its recovery and growth plans for the year. I can never emphasize enough the crucial role that our people, with their unwavering passion and resilience, have played in pushing our organization to thrive in times of great uncertainty,” said Sabin Aboitiz, Aboitiz Group president and chief executive.
Aboitiz earlier expressed confidence that AEV would hit close to prepandemic earnings level this year and exceed prepandemic output next year.
Power accounted for 58 of the total income contributions, while financial services had a 29-percent share. Income contributions from food, infrastructure and real estate businesses stood at 8 percent, 4 percent and 1 percent, respectively.
Flagship Aboitiz Power Corp.’s first quarter net income contribution to AEV increased by 200 percent year-on-year to P4.8 billion.
Higher water inflows, higher availability of thermal facilities, and higher spot sales offset the lower demand for power brought about by the continued enforcement of COVID 19-related community quarantines.
AboitizPower was also able to claim liquidated damages for the delay in the construction of GNPower Dinginin Ltd. Co. and also received the final payment for business interruption claims in relation to the GNPower Mariveles Energy Center (GMEC) outages in 2020.
Union Bank of the Philippines’ three-month income contribution amounted to P2.4 billion, 79-percent higher year-on-year, on the back of higher interest earnings and hefty trading gains. Standalone net profit rose by 79 percent year-on-year to P4.7 billion.
AEV’s non-listed food subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd. (which includes Gold Coin Management Holdings Pte. Ltd.) contributed P630 million in net income for the first quarter, 262-percent higher year-on-year.
The farms business segment returned to profitability as the African swine fever, while curbing the supply of pork in the market, also boosted prices. The flour business also booked steady earnings, making up for a slump in the feeds business, which was hit by higher raw material costs that negated the improvement in average selling prices.
The real estate businesses under AboitizLand Inc. chalked up a consolidated net income of P101 million for the first quarter, recovering from P110 million in losses recorded in the same period last year. This was driven by increased construction activity for its residential business and an increased sales of high value lots.
Republic Cement & Building Materials’ income contribution amounted to P334 million, 446-percent higher year-on-year on higher sales volume arising from new cement capacities in Bulacan and Iligan, alongside reduced costs and increased overall efficiency.