Aboitiz profit falls 9% in 9M

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    Aboitiz Equity Ventures Inc., (AEV) said profit for the first nine months of the year reached P15.7 billion, down 9 percent from the P17.3 billion in the same period reported last year.

    “The company recognized non-recurring losses of P155 million, lower than the previous year’s P407 million, representing net foreign exchange and derivative losses.

    Without these one-off losses, AEV’s core net income for the first nine months was P15.9 billion, 10 percent lower from P17.7 billion.

    For the third quarter alone, profit stood at P6.8 billion, down 6 percent from P7.2 billion last year, with the company reporting a P234 million in unrealized foreign exchange losses compared to a P60 million gain last year.

    “Power accounted for 60 percent of the total income contributions from AEV’s strategic business unit (SBU) for the first nine months of 2019, while the financial services, food, real estate and infrastructure SBUs income contributions were at 25 percent, 6 percent, 5 percent, and 4 percent, respectively,” the company said.

    The group’s power business under Aboitiz Power Corp. posted profit of P10.4  billion, down 19 percent from P12.8 billion.

    Union Bank of the Philippines’ profit contribution to AEV hit P4.2 billion, up 41 percent from P3.0 billion driven by robust revenues coming from the sustained double-digit growth in earning assets as well as strong trading gains for the first three quarters of 2019.

    Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and AEV International Pte. Ltd. (AEVI)) meanwhile posted income contribution of P1 billion, down 31 percent from P1.5 billion last year.

    The food SBU’s Philippine subsidiaries posted profit of P704  million.

    The feeds business posted profit of P307 million, 7 percent lower  due to higher manufacturing costs and operating expenses. The farms business segment posted a profit of P42 million, 91 percent lower , resulting from decreased margins following increased feeds costs and lower live hog selling prices.