October 29, 2024 | 12:00am
MANILA, Philippines — Higher contributions from its power and banking units buoyed earnings of Aboitiz Equity Ventures Inc. (AEV) in the nine-month period ending September.
From January to September, AEV posted a four-percent rise in consolidated net income to P18.8 billion from P18 billion in the same period in 2023.
The company’s core net income, which excludes non-recurring foreign exchange losses of P20 million, stood at P18.8 billion, up by nine percent from last year’s P17.3 billion.
“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 CEO Sabin Aboitiz said.
Power accounted for bulk or 64 percent of the group’s total net income contributions for the three quarters.
Aboitiz Power Corp.’s net income contribution amounted to P14.5 billion, four percent higher than the P13.9 billion recorded during the same period in 2023.
The power unit’s robust performance during the period was driven by higher generation portfolio margins as well as additional capacities from its solar plants.
Financial services and food and beverage strategic business units, meanwhile, each accounted for 19 percent of total net income contributions.
Earnings contribution from Union Bank of the Philippines was up by four percent year-on-year to P4.2 billion, while the contribution of the food and beverage segment surged by over eight times to P4.2 billion.
Aboitiz Land Inc. and its subsidiaries saw its net income drop by 27 percent to P521 million from P716 million due to the higher operational expenses and overhead costs and asset monetization in 2023.
Aboitiz InfraCapital, on its end, incurred a net loss of P148 million, a turnaround from the P1.4 billion profit recorded in the same period last year, which included P1.2 billion of non-recurring gain.
Moving forward, Aboitiz said the group is optimistic about the opportunities ahead with inflation moderating and recent rate cuts providing relief.
“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,” Aboitiz said.
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