AEV books lower profit of P15.9B at end-Sept

Conglomerate Aboitiz Equity Ventures Inc. (AEV) saw a 7-percent year-on-year decline in nine-month net profit to P15.9 billion due to slower earnings from its banking, food and cement businesses alongside nonrecurring foreign exchange losses.

AEV booked a one-time foreign exchange loss of P1.2 billion—much larger than last year’s P17 million—from the revaluation of dollar-denominated loans and pre-termination costs on refinancing. Without this, AEV’s core net income was flat at P17.1 billion versus last year’s level.

“We remain optimistic on the long-term fundamentals of our businesses, and we look forward to continuing to advance business and communities in the execution of our growth strategy,” AEV president and CEO Erramon Aboitiz said.

Flagship AboitizPower (AP) grew its income contribution to AEV by 4 percent year-on-year to P12.1 billion as its net income for the period increased by 4 percent to P15.7 billion.

Income from power generation grew by 22 percent year-on-year to P14.2 billion, accounting for 80 percent of AP’s business.

UnionBank’s nine-month income contribution to AEV decreased by 21 percent year-on-year to P3.1 billion.

Contribution from PETNET, the group’s other financial services company, increased by 315 percent year-on-year to P20 million for the first three quarters.

AEV’s nonlisted food subsidiaries—Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte Ltd.—reported a net income of P1.2 billion, 14 percent lower year-on-year.

Feeds Philippines and Flour also reported a drop in net income contributions largely driven by lower margins and higher operating costs.

Republic Cement’s income contribution shrunk by 80 percent year-on-year to P249 million.

Meanwhile, property arm AboitizLand recorded a net income of P340 million, marking an increase of 128 percent year-on-year.