Business units power up AEV profit to P4.9 billion in Q1

MANILA, Philippines — Conglomerate Aboitiz Equity Ventures Inc. (AEV) registered strong profitability in the first quarter, driven by higher contributions from its business units.

AEV’s net income from January to March rose by 22 percent to P4.9 billion from P4 billion reported in the first quarter of 2023.

Excluding a non-recurring net loss of P54 million, the company’s core net income for the quarter stood at P5 billion, eight percent higher than the company’s core net income of P4.6 billion during the same period last year.

Power remained the major driver of the group’s performance, accounting for 67 percent of net income contributions during the quarter, followed by financial services with 16 percent.

“The first quarter of the year has been an exciting one for the Aboitiz Group, as we continue to build on our strong foundation of sustainable growth,” Aboitiz Group president and CEO Sabin Aboitiz said.

“Our financial performance this quarter reflects the hard work and dedication of our team, and we look forward to continued success in the months ahead,” he said.

Aboitiz Power Corp. delivered a core net income of P7.8 billion during the quarter, three percent higher year-on-year, due to higher energy sold during the quarter.

Energy sales from AboitizPower’s distribution business increased by nine percent to 1,526 gigawatt hours on the back of higher demand driven by the effect of the El Niño phenomenon.

UnionBank and its subsidiaries, meanwhile, posted a net income of P2 billion, with net interest income improving 17 percent year-on-year to P13.4 billion.

AboitizLand more than doubled its net income to P280 million from P127 million as a result of higher revenues generated mainly by the newly launched phases in Pristina and Priveya last year, along with additional revenues from higher spot sales in 2024.

Net income contribution from the food and beverage segment reached P935 million, a reversal from the P534 million loss recorded in the first quarter last year.

AEV said the turnaround was primarily driven by the food group’s flour and agribusiness divisions which continued to benefit from stabilizing commodity prices and strategic selling prices adjustments.

Also helping the turnaround was the fresh contributions from Coca-Cola Beverages Philippines Inc. which AEV acquired last February.

“With the successful acquisition of the Coca-Cola business, we are well-positioned to capitalize on new opportunities and expand our reach in the market,” Aboitiz said.

Aboitiz InfraCapital’s income contribution to AEV in the first quarter, meanwhile, dropped by 81 percent to P72 million from P375 million recorded in the same quarter in 2023.