MANILA, Philippines — Conglomerate Aboitiz Equity Ventures (AEV) saw its net income surge by 22 percent to P4.9 billion in the first three months of 2024 from P4 billion in the same period a year ago, as its electricity business continued to lift profits despite dips in its banking and infrastructure units.
Excluding a nonrecurring net loss of P54 million, AEV’s core net income in the January to March period reached P5 billion from P4.6 billion in the same period last year, the company said in a stock exchange filing on Friday.
“The first quarter of the year has been an exciting one for the Aboitiz Group, as we continue to build on our strong foundation of sustainable growth,” said Sabin Aboitiz, group president and CEO.
READ: Aboitiz Power ramps up expansion into RE
Aboitiz Power Corp. contributed 67 percent to the total net income of the group. It was followed by financial services (16 percent), food and beverage (15 percent), real estate (5 percent), and infrastructure (-3 percent).
AboitizPower saw its earnings inch up by 7 percent to P4.2 billion as energy sales increased.
UBP profit down 44%
Meanwhile, the profit of Union Bank of the Philippines dropped by 44 percent to P978.3 million from P1.8 billion the previous year, as operating expenses increased.
The real estate business through Aboitiz Land Inc. more than doubled its earnings to P280 million on higher revenues due to new projects.
Aboitiz InfraCapital Inc. contributed P72 million, a steep 81-percent fall due to higher interest expenses as it incurred more debt for expansion.
The food and beverage segment—through Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., and Coca-Cola Beverages Philippines Inc.—accounted for P935 million of first-quarter results, a reversal from the P534-million loss it recorded in the first quarter of last year.
This was a result of “stabilizing” commodity prices and “strategic selling price adjustments,” AEV said. Fresh contributions from Coca-Cola Philippines likewise contributed to the reversal.
READ: Aboitiz group boosting nonpower businesses
Earlier, the group said it wanted to strike a balance among its units through its recent acquisitions, and aimed to have at least 50 percent of its earnings before interest, taxes, depreciation, and amortization come from its other core businesses. Power remains the biggest contributor at more than half.
AEV in November last year expanded its footprint in the consumer segment after completing the P100-billion acquisition of Coca-Cola Philippines with partner Coca-Cola Europacific Partners Plc. (CCEP).
AEV acquired 40 percent of the soft drink giant, while CCEP bought 60 percent.
UnionBank also recently dropped the Citi brand in March as it finalized the P72-billion acquisition.