Aboitiz Group profits down 11% in first half

The Aboitiz family conglomerate Aboitiz Equity Ventures Inc. (AEV) said foreign exchange losses pulled down profits in the first semester of 2023 by 11 percent to P10.5 billion.

The power, banking, food and infrastructure giant cited nonrecurring losses of P656 million, mainly due to the revaluation of its dollar cash and other similarly-classified financial holdings.

Core earnings, which removes the impact of nonrecurring items, rose 23 percent to P11.1 billion from January to June compared to the same period in 2022.

Aboitiz Group president and CEO Sabin Aboitiz downplayed the decline in earnings, saying the conglomerate remains committed to an ongoing business transformation program.

“This momentum is not just about the figures, it’s about our great transformation to become a much more resilient and agile organization,” he said in a statement.

“We have a firm eye on the future, capitalizing on new opportunities and facing challenges with innovation and sustainability at our core,” he added.

The company’s core portfolio firms are Aboitiz Power Corp. Union Bank of the Philippines, Pilmico Foods Corp., Aboitiz Land and Aboitiz InfraCapital.

It said power accounted for 72 percent of income contributions during the first semester while financial services accounted for 25 percent. The rest came from real estate, food and infrastructure.

Aboitiz Power contributed P9.3 billion, up 79 percent from the same period last year. The power subsidiary’s core earnings during the period surged 95 percent to P17.8 billion during the period.

UnionBank’s income contribution to AEV rose 4 percent to P3.2 billion during the semester. The banking giant, which acquired the assets of Citi Philippines last year, booked a net income of P6.4 billion, up 6 percent as net interest income jumped 41 percent to P24 billion. INQ