AEV earnings slip sans one-time gains
MANILA -Aboitiz Equity Ventures (AEV) incurred a 16-percent drop in net income during the first three quarters in the absence of billions worth of nonrecurring gains that had buoyed its bottom line last year.
On Tuesday, the listed conglomerate reported that its nine-month net income amounted to P18 billion, weaker than the P21.4 billion it booked in the same period a year ago.
The profit declined after it registered a one-time gain of P738 million for the period, which was markedly lower than the P5.3 billion it recorded a year ago. Core income, however, was up 8 percent to P17.3 billion.
For the third quarter alone, net income decreased by 21 percent to P7.6 billion.
Power business accounted for 70 percent of its net income. Flagship Aboitiz Power Corp. grew its bottom line by 37 percent to P26.7 billion on the back of robust generation and retail electricity supply businesses.
Union Bank of the Philippines’ net income dropped by 19 percent to P8.1 billion as the acquisition of Citi’s consumer business and digital bank rollout bloated its expenses.
Aboitiz InfraCapital contributed P1.4 billion in earnings, showing a 17-percent growth, thanks to “robust sales of … economic estates and incremental contributions from the water and airport business units.”
Lower operating and project costs, along with revenue inflow from property sales, boosted Aboitiz Land’s net income by 5 percent to P716 million in January to September.
AEV’s food subsidiaries, including Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd., saw their income contribution nearly double to P499 million on better margins and cheaper raw material costs.
This year, the Aboitiz Group allocated P78 billion for expansion projects for renewable energy and infrastructure, including Apo Agua, its bulk water project in Davao City.
It recently raised P17.45 billion from a bond sale, the second transaction drawn out of its P30-billion debt program.
Among AEV’s recent big moves include the planned acquisition of a 40-percent stake in Coca-Cola Philippines and takeover of the Mactan-Cebu International Airport.
