LISTED conglomerate Aboitiz Equity Ventures, Inc. (AEV) posted a 35% drop in first-quarter (Q1) net income to P3.2 billion from P4.9 billion a yr ago on account of weaker contributions across its business units.
“While this marks a brief decline from the previous yr, the group’s strategic investments in renewable energy and infrastructure expansion underscore its long-term vision for growth, resilience, and nation-building,” AEV said in a press release on Wednesday.
Amongst its business units, power had the most important net income contribution at 62%, followed by food and beverage at 35%.
Net income contributions from the financial services, real estate, and infrastructure businesses were at 17%, -1%, and -13%, respectively.
“While revenues barely dipped on account of lower power selling prices, this reflects favorable cost trends — particularly in fuel and provide. Our focus stays on the standard of earnings, not only topline growth,” AEV President and Chief Executive Officer Sabin M. Aboitiz said.
“Seeking to 2025, we see much more opportunities to create value for our shareholders and contribute to national development,” he added.
Net income contribution from power unit Aboitiz Power Corp. fell by 39% to P2.5 billion from P4.2 billion a yr earlier.
Useful earnings before interest, taxes, depreciation, and amortization dropped by 8% to P15.1 billion on account of lower spot market prices and the upfront, scheduled outages of the Pagbilao, Therma Visayas, Inc., and GNPower Mariveles Energy Center plants.
The banking unit Union Bank of the Philippines contributed P702.3 million in net income, down by 28% from P978.3 million a yr ago. Revenue rose by 8% to P19.4 billion on higher net interest income and growth in consumer loans.
Real estate subsidiary Aboitiz Land, Inc. recorded a P58.3-million consolidated net loss, a reversal from the P280.3-million net income a yr earlier, on account of lower sales and better forfeitures.
Net income contribution from the food and beverage segment rose by 54% to P1.4 billion, driven by profitability gains, margin and volume growth within the flour and agribusiness segments, and full contributions from Coca-Cola Europacific Aboitiz Philippines, Inc. (CCEAP).
Corporations under the segment include CCEAP, Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd.
Meanwhile, infrastructure unit Aboitiz InfraCapital, Inc. recorded a P207-million net loss on account of higher interest expense from increased debt availments for its expansion.
The conglomerate’s share in Republic Cement & Constructing Materials, Inc.’s loss grew by 48% to P338.1 million on lower sales volume and selling prices on account of weak demand.
AEV earmarked P105 billion in capital expenditure this yr, of which P78.1 billion will go to the expansion of its renewable energy business.
AEV shares retreated by 2.4% or 80 centavos to P32.50 apiece on Wednesday. — Revin Mikhael D. Ochave
