Weaker business units drag AEV profit in Q1
LISTED conglomerate Aboitiz Equity Ventures, Inc. (AEV) posted a 35% drop in first-quarter (Q1) net income to P3.2 billion from P4.9 billion a year ago due to weaker contributions across its business units.
“While this marks a temporary decline from the previous year, the group’s strategic investments in renewable energy and infrastructure expansion underscore its long-term vision for growth, resilience, and nation-building,” AEV said in a statement on Wednesday.
Among its business units, power had the largest net income contribution at 62%, followed by food and beverage at 35%.
Net income contributions from the financial services, real estate, and infrastructure businesses were at 17%, -1%, and -13%, respectively.
“While revenues slightly dipped due to lower power selling prices, this reflects favorable cost trends — particularly in fuel and supply. Our focus remains on the quality of earnings, not just topline growth,” AEV President and Chief Executive Officer Sabin M. Aboitiz said.
“Looking to 2025, we see even more opportunities to create value for our shareholders and contribute to national development,” he added.
Net income contribution from power unit Aboitiz Power Corp. fell by 39% to P2.5 billion from P4.2 billion a year earlier.
Beneficial earnings before interest, taxes, depreciation, and amortization dropped by 8% to P15.1 billion due to lower spot market prices and the upfront, scheduled outages of the Pagbilao, Therma Visayas, Inc., and GNPower Mariveles Energy Center plants.
The banking unit Union Bank of the Philippines contributed P702.3 million in net income, down by 28% from P978.3 million a year ago. Revenue rose by 8% to P19.4 billion on higher net interest income and growth in consumer loans.
Real estate subsidiary Aboitiz Land, Inc. recorded a P58.3-million consolidated net loss, a reversal from the P280.3-million net income a year earlier, due to lower sales and higher forfeitures.
Net income contribution from the food and beverage segment rose by 54% to P1.4 billion, driven by profitability gains, margin and volume growth in the flour and agribusiness segments, and full contributions from Coca-Cola Europacific Aboitiz Philippines, Inc. (CCEAP).
Companies under the segment include CCEAP, Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd.
Meanwhile, infrastructure unit Aboitiz InfraCapital, Inc. recorded a P207-million net loss due to higher interest expense from increased debt availments for its expansion.
The conglomerate’s share in Republic Cement & Building Materials, Inc.’s loss grew by 48% to P338.1 million on lower sales volume and selling prices due to weak demand.
AEV earmarked P105 billion in capital expenditure this year, of which P78.1 billion will go to the expansion of its renewable energy business.
AEV shares retreated by 2.4% or 80 centavos to P32.50 apiece on Wednesday. — Revin Mikhael D. Ochave
