MANILA, Philippines — Aboitiz family-led conglomerate Aboitiz Equity Ventures (AEV) is eyeing to strengthen its nonpower business through its recent acquisitions, hoping to achieve a balance among its units.
AEV chief financial officer Jose Emmanuel Hilado said they aimed to have at least 50 percent of the group’s earnings before interest, taxes, depreciation, and amortization (Ebitda) to come from its nonpower businesses.
“The consumer market is where we see more opportunities simply because we have a young population and strong consumption, and this will continue to anchor our economic growth in the Philippines,” Hilado said during a press briefing. He did not mention a timeline detailing when they planned to reach the 50-percent Ebitda share.
Last year, Aboitiz Power Corp. accounted for 67 percent of the parent company’s P23.5-billion net income.
Financial services contributed 18 percent, while infrastructure, food, and real estate accounted for 6 percent, 5 percent, and 4 percent, respectively.
Coca-Cola acquisition
The Aboitiz Group in November 2023 expanded its footprint in the consumer segment after completing the P100-billion acquisition of Coca-Cola Beverages Philippines Inc. with partner Coca-Cola Europacific Partners Plc. (CCEP).
AEV acquired 40 percent of the soft drink giant, while CCEP bought 60 percent.
Coca-Cola, which has been present in the country since 1927, has 73 production lines and 19 plants in the Philippines. Its brands include Coca-Cola, Royal, and Sprite.
Hilado said there was “not much [integrating] to do” with Coca-Cola Philippines, as integration efforts would mostly fall with majority owner CCEP.
“The transfer of ownership to CCEP and AEV is by itself transformational for [Coca-Cola Philippines] because it is now part of the largest bottler in the world,” he said.
Meanwhile, banking arm Union Bank of the Philippines dropped the Citi brand in March, sealing the P72-billion deal that was two years in the making.
READ: UnionBank to give up Citi brand in early 2024
Asked on what the 1.5 million Citi clients can expect from the merger, UnionBank president and CEO Edwin Bautista said they would “recreate” Citi’s features.
“The former Citi cardholders are also going to experience new products and features, [including] payments via InstaPay,” he said.
UnionBank earlier unveiled plans to raise up to P10 billion via stock rights offering to infuse funds into its digital arm.