Aboitiz Equity Ventures Inc. closed the first quarter of the year with an “attributable profit” of P3.2 billion, down 34.6 percent from P4.9 billion in the same period last year.
The “attributable profit” item refers to the company’s (net) income after deducting the share of minority interests in the business.
The “weak” performance of power, real estate, and infrastructure business” accounted for the profit decline, the listed holding company of the Aboitiz Family said in a statement on Wednesday.
However, the company said this is just “a temporary decline” with the company committed to continue its strategic investments in renewable energy and infrastructure expansion.
The company did not provide an exact figure for revenue generated for the period, though company president Sabin Aboitiz said it posted a “slight dip” from last year’s P69.1 billion.
“While revenues slightly dipped due to lower power selling prices, this reflected favorable cost trends — particularly in fuel and supply. Our focus remains on the quality of earnings, not just topline growth,” Aboitiz said.
AEV said its power business under AboitizPower Corp. contributed 62 percent of the group’s net income for the period, followed by UnionBank of the Philippines at 17 percent, and the food and beverage business under Aboitiz Foods and Coco-cola Europacific Aboitiz Philippines Inc, 35 percent.
These were offset by a loss in the real estate unit AboitizLand and the infrastructure business, Aboitiz InfraCApital, and Republic Cement.
AEV noted that AboitizPower’s net income contribution dropped 39 percent due to lower spot market prices and scheduled plant outages.
AEV also said AboitizPower has successfully switched on its new solar projects in Laoag (159 MWp), Armenia (45 MWp), and Calatrava (173 MWp), which helped offset the impact of scheduled plant outages and market pricing challenges.
“UnionBank, AEV’s banking and financial services arm, posted an 8 percent year-on-year revenue increase. This was supported by strong consumer lending growth and improved margins. While non-recurring digital investments affected net income, these are expected to drive long-term, tech-enabled growth,” the company said.
The food business meanwhile grew its net income by 54 percent to P1.4 billion, driven by improved margins in flour and agribusiness of Aboitiz Foods, and the full contribution from Coca-Cola Europacific Aboitiz Philippines (CCEAP), AEV said.
The real estate business under AboitizLand posted a P58.3 million loss, attributed to lower sales and higher forfeitures. AEV declined to provide a comparative figure.
The infrastructure businesses posted a combined P207 million loss,owing to higher interest expense with Aboitiz InfraCapital posting losses in recent quarters due to increased investments, AEV said.
AEV said Aboitiz InfraCapital is in an aggressive expansion to boost regional connectivity, tourism, and local economies, aligning with the “national infrastructure agenda.”
