ABOITIZ Equity Ventures, Inc. (AEV) reported a 4% decline in its third-quarter consolidated net income, dropping to P7.3 billion from P7.6 billion last year, primarily due to reduced contributions from its infrastructure and real estate units.
Third-quarter core net income rose by 20% to P7.4 billion from P6.2 billion a year ago, AEV said in a statement to the stock exchange on Monday.
“Our third-quarter results reflect not only the strength of our diversified businesses but also the positive momentum we are seeing in the broader economy,” Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said.
For the first nine months, AEV said its consolidated net income rose by 4% to P18.8 billion from P18 billion last year.
Core net income for the period increased by 9% to P18.8 billion from P17.3 billion a year ago.
“Power accounted for 64% of the total net income contributions from AEV’s strategic business units (SBU) for the first nine months of 2024, while financial services and food and beverage SBUs each accounted for 19%. Net income contributions from real estate and infrastructure SBUs were at 2% and -4%, respectively,” the conglomerate said.
Net income contribution from the conglomerate’s power unit, Aboitiz Power Corp., rose by 4% to P14.5 billion from P13.9 billion in 2023.
Beneficial earnings before interest, taxes, depreciation, and amortization rose by 12% to P56.1 billion, driven by higher generation portfolio margins and additional capacities from the 159-megawatt (MW) Laoag and 94-MW Cayanga solar plants.
Net income contribution from Union Bank of the Philippines rose by 4% to P4.2 billion from P4 billion in 2023.
On a stand-alone basis, UnionBank grew its net income by 6% to P8.6 billion from P8.1 billion a year ago. Revenue increased by 9% to P57.7 billion.
Net income contribution from the food and beverage segment, which consists of Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., and Coca-Cola Beverages Philippines, Inc. (CCBPI), rose by more than eight times to P4.2 billion from P499 million last year.
“This was primarily driven by the Aboitiz Foods’ flour and agribusiness divisions, which continued to benefit from stabilizing commodity prices, optimized formulations in both feeds and flour, strategic selling price adjustments, and fresh contributions from CCBPI, where AEV acquired a 40% stake on Feb. 23, 2024,” AEV said.
AEV’s real estate unit, Aboitiz Land, Inc., saw a 27% decline in consolidated net income to P521 million due to higher operational expenses and overhead costs and asset monetization in 2023.
Net income contribution from the infrastructure segment led by Aboitiz InfraCapital, Inc. recorded a P148 million net loss, a reversal from the P1.4 billion profit last year.
The conglomerate’s share in Republic Cement & Building Materials, Inc.’s loss for the first nine months rose by 23% to P726 million as sales volume and selling prices continued to decline year on year due to weak market demand for cement.
Meanwhile, Mr. Aboitiz said the conglomerate is optimistic about its financial performance amid better macroeconomic conditions.
“With inflation moderating and recent rate cuts providing relief, we are optimistic about the opportunities ahead. These improving macroeconomic conditions will allow us to continue to create long-term value for our stakeholders and to contribute to the economic growth of our country,” Mr. Aboitiz said.
On Monday, AEV shares declined by 1.96% or 70 centavos to P35.10 per share. — Revin Mikhael D. Ochave