MANILA, Philippines — Aboitiz Equity Ventures Inc. (AEV), the listed Cebu-based conglomerate, reported a consolidated net income of P9.6 billion in the third quarter, up 57 percent from a year ago.
Excluding non-recurring gains of P2.6 billion, the company’s core net income for the third quarter would have amounted to P7 billion, a 20 percent increase year-on-year.
Nine-month net income rose by nine percent to P21.4 billion from the P19.5 billion recorded a year ago, data from the company showed.
From January to September, the company recognized non-recurring gains of P5.3 billion, primarily due to foreign exchange gains.
Without these one-off gains, AEV’s core net income during the nine-month period reached P16.1 billion, down 17 percent year-on-year.
Aboitiz Group president and CEO Sabin Aboitiz said the company’s latest financials reflect a transformative year for the company as it transitions to become the Philippines’ first ‘techglomerate.’
“We will continue to invest substantially and strategically in innovation, but it has always been our investment in people that have yielded the most returns,” Aboitiz said.
By business segment, AboitizPower Corp.’s income contribution to AEV during the nine-month period amounted to P10.1 billion, down 16 percent from a year ago.
This was primarily due to AEV’s reduced ownership in AboitizPower following a strategic partnership with JERA Asia Private Limited (JERA). This resulted in a reduced ownership in AboitizPower to 52 percent from 77 percent effective end of last year.
On a stand-alone basis, AboitizPower’s net income for the nine-month period reached P19.5 billion, 24 percent higher than the P15.7 billion recorded a year ago.
Banking arm UnionBank’s income contribution to AEV during the period amounted to P5.1 billion, down five percent compared to the P5.4 billion recorded a year ago.
On a stand-alone basis, UnionBank and its subsidiaries recorded a net income of P10.1 billion during the period, down six percent.
This was due to extraordinary trading gains recorded in the first half of 2021, AEV said in its regulatory filing.
For the real estate business, Aboitiz Land Inc. (AboitizLand) reported a consolidated net income of P1.7 billion during the period, up 167 percent.
AEV’s non-listed food subsidiaries’ Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd., which includes Gold Coin Management Holdings Pte. Ltd., posted a net income contribution to AEV of P260 million during the nine-month period.
This reflected a decline of 83 percent compared to the P1.5 billion recorded a year ago.
For the Infrastructure group, Republic Cement and Building Materials Inc.’s income contribution to AEV during the period amounted to P48 million, 97 percent lower than the P1.4 billion income recorded a year ago.
This was due to lower market demand for cement due to pre-election construction ban and post-election transition, global commodity price increase of steel, other construction materials and higher input costs of fuel and electricity, AEV also said.