AEV nets P18.8B in nine months

Aboitiz Equity Ventures Inc. (AEV), a conglomerate led by the Aboitiz Family, reported a modest profit growth in the first nine months of the year, with its power business as a leading growth driver.

In a Monday stock exchange disclosure, AEV reported a consolidated net income of P18.8 billion from January to September, a 4 percent increase from P18 billion in the same period last year. Excluding non-recurring foreign exchange losses of P20 million, the core net income rose 9 percent to P18.8 billion from P17.3 billion.

In the third quarter alone, AEV’s consolidated net income was P7.3 billion, down 4 percent from P7.6 billion a year ago. Adjusting for non-recurring foreign exchange losses of P104 million, the core net income increased 20 percent to P7.4 billion from P6.2 billion a year ago.

“Our third-quarter results reflect the strength of our diversified businesses and positive economic momentum,” Aboitiz Group president and CEO Sabin M. Aboitiz said.

“With inflation moderating and rate cuts providing relief, we are optimistic about the opportunities ahead to drive long-term value for our stakeholders and contribute to national economic growth,” he added.

64% from power

The company’s Strategic Business Units (SBUs) showed varied contributions: Power accounted for 64 percent of total net income, while Financial Services and Food and Beverage each contributed 19 percent.

Real Estate and Infrastructure contributed 2 percent and -4 percent, respectively.

Aboitiz Power Corp. contributed P14.5 billion to AEV’s net income for the first nine months, up 4 percent from P13.9 billion in the same period last year, driven by improved generation margins and additional capacity from the 159 megawatts (MW) Laoag and 94 MW Cayanga solar plants. Energy sold increased by 2 percent to 26,910 gigawatt-hour.

Union Bank of the Philippines reported a net income contribution of P4.2 billion for the first nine months, a 4 percent increase from P4 billion in the prior year.

UnionBank’s stand-alone net income reached P8.6 billion, up 6 percent from P8.1 billion last year. Revenues increased by 9 percent to PP57.7 billion, and the cost-to-income ratio improved to 57.2 percent from 63.4 percent last year.

AboitizLand’s consolidated net income for the first nine months was P521 million, down 27 percent from P716 million in the same period last year due to higher operational and overhead costs.

The Food and Beverage segment contributed P4.2 billion, more than eight times the P499 million recorded in the same period last year. This was due to improved performance in Aboitiz Foods’ Flour and Agribusiness divisions and new contributions from Coca-Cola Beverages Philippines Inc., where AEV acquired a 40 percent stake in February.

Aboitiz InfraCapital, Inc. reported a net loss of P148 million, a reversal from a P1.4 billion profit in the same period last year. AEV’s share of Republic Cement’s losses for the first nine months reached P726 million, up from P592 million in 2023 due to lower market demand.