Aboitiz group 9-month earnings down 16%

Aboitiz Equity Ventures Inc. (AEV) reported a 16 percent decrease in its net income to P18 billion for the first nine months of 2023 compared as against P21. 4 billion in the same period in 2022.

In a disclosure to the Philippine Stock Exchange (PSE), the firm attributed the decline to its non-recurring gains, which plummeted by 86 percent to P738 million this year from P5.3 billion last year. The company’s core net income for the first nine months of this year was P17.3 billion, without the one-off gains.

But the firm’s consolidated assets for this year’s nine-month period inched up a modest three percent to P830.2 billion from P762.5 billion. Cash and cash equivalents were also 11 percent higher at P113.1 billion this year from P101.5 billion last year.

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Among AEV’s Strategic Business Units (SBUs), its power segment accounted for 70 percent of the firm’s total income, with Aboitiz Power Corporation’s (AboitizPower) income contribution for the first nine months of 2023 amounting to P13.9 billion, 37 percent higher than P10.1 billion in 2022.

On its own, AboitizPower’s earnings for the first nine-month period was 37 percent higher at P26. 7 billion this year than P19. 5 billion last year. 

Its consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the generation and retail  electricity supply businesses grew 20 percent to P46.7 billion this year from P39 billion last year due to “higher availability and fresh contributions from GNPower Dinginin Ltd. Co. Philippines.” 

Meanwhile, its consolidated EBITDA for the distribution business rose 51 percent at P7.2 billion this year from ₱4.8 billion in 2022.

Energy sales from residential customers inched up by seven percent, along with commercial and industrial customers by six percent, attributed to “recoveries in demand in the areas affected by Typhoon Odette and resurgence of energy sales back to pre-pandemic level.”

The Financial Services accounted for 20 percent of AEV’s total income, with Union Bank of the Philippines (UnionBank) contributions reduced by 22 percent to P4 billion this year from P5.1 billion last year.

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The infrastructure and real estate segments contributed four percent each to AEV’s income. Aboitiz InfraCapital Inc. (AIC) saw a 17 percent growth in contributions to P1.4 billion this year from P1.2 billion last year due to “robust lot sales of economic estates, and incremental contributions from water and airport BUs. 

The firm’s non-listed real estate businesses, Aboitiz Land Inc. (AboitizLand) and its subsidiaries, reported a five percent growth in consolidated net income of P716 million in the first nine months of 2023 from P684 million in 2022 due to lower operating and project costs and gains from sale of properties.

Its food SBUs contributed three percent to its net income. 

Non-listed food subsidiaries’ Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd. including Gold Coin Management Holdings Pte. Ltd.’s income contribution rose 92 percent to P499 million this year from P260 million in 2022. 

The segment recovered because of better margins from agribusiness and flour segments driven by lower costs of raw materials and better pricing strategy.

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The article was originally published in Manila Bulletin and written by Khriscielle Yalao.

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