Aboitiz group 2022 profit down 9% | Inquirer Business

Aboitiz group 2022 profit down 9%

/ 04:17 PM March 07, 2023

The Aboitiz family conglomerate Aboitiz Equity Ventures Inc. saw earnings drop in 2022 amid a broader strategic pivot that lessened its reliance on earnings from power generation.

In a stock exchange filing on Tuesday, Aboitiz Equity said net income for the year slid 9 percent to P24.8 billion, despite a P3.5-billion boost from non-recurring foreign exchange gains.

This was mainly due to a “transformation strategy” that saw the energy, banking, food and real estate conglomerate sell a stake in Aboitiz Power Corp. in late 2021, cutting its ownership to 52 percent from 77 percent.


“As we closed another transformative year for the Aboitiz Group, our techglomerate continues to take shape, not just in our financial reports, but also in the major culture shifts taking place within our organization,” Aboitiz Equity president and CEO Sabin Aboitiz said in a statement.


Income contributions from core business units in 2022 were power (62 percent), banking (27 percent), and real estate (11 percent). Food and infrastructure recorded negative contributions for the year.

“We will continue to focus our energy and resources on strategic innovation and, more importantly, on people and talent,” Aboitiz said.

Aboitiz Power ended the year with an income contribution of P14.3 billion, down 11 percent. The subsidiary’s profits in 2022 jumped 32 percent to P27.5 billion mainly due to income from GNPower Dinginin Ltd. Co. and “higher availability across its portfolio, gains from commodity hedges, and higher water inflows.”

Union Bank of the Philippines contributions to the parent ended the year flat at P6.3 billion. The bank’s profit reached P12.7 billion in 2022 as robust gains from core businesses offset the absence of large trading profits.

Aboitiz Land’s profits were also flat at P2.6 billion while revenues expanded by 23 percent to P4 billion.

“The residential business had a significant increase in its revenue contribution year-on-year due to increased house construction activity, significant site development completion, and strong sales with spot cash payments,” Aboitiz Equity said.


Food companies, such as Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd., saw margin losses of P14 million last year partly due to foreign exchange losses.

The group’s infrastructure unit also recorded losses of P323 million last year.

“This was due to lower market demand for cement caused by the pre-election construction ban and post-election transition, global commodity price increase of steel, other construction materials and higher input costs of fuel and electricity,” Aboitiz Equity said.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

It added that Republic Cement & Building Materials also benefited from pandemic tax gains in 2021 following the passage of the Corporate Recovery and Tax Incentives for Enterprises Act.

TAGS: Aboitiz Equity Ventures, financial performance

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.