AEV hikes nine-month net income by 9% to P17.3 billion
On a year-to-date (YTD) basis, Aboitiz Equity Ventures, Inc.’s (AEV’s) net income for the first nine months of 2018 was P17.3 billion, 9% higher than the P15.9 billion recorded last year, while core net income stood at P17.7 billion, up 4% from P17.1 billion last year. Gains from the company’s Power, Food, and Land strategic business units (SBUs) contributed to the increase.
“We welcome the gains posted by our strategic business units for the first nine months of the year. This reflects the strength of a focused growth strategy that endeavors to do well by doing good in advancing business and communities,” Erramon I. Aboitiz, AEV President and Chief Executive Officer, said.
“We remain on the lookout for opportunities that not only help accelerate the country’s economic growth but more importantly, become catalysts of positive change through our products and services,” Aboitiz added.
Power accounted for 72% of total income contributions from AEV’s SBUs, followed by Banking and Financial Services, Food, Land, and Infrastructure at 17%, 8%, 2%, and 1%, respectively.
Power
AboitizPower’s net income contribution to AEV increased by 6% year-on-year (YoY) to P12.8 billion from P12.1 billion. On a stand-alone basis, its core net income for the first nine months of 2018 was P18.4 billion, 5% higher YoY. This was primarily due to income contributions from Pagbilao Energy Corporation and Hedcor Bukidnon, Inc.
Banking & Financial Services
UnionBank’s income contribution to AEV decreased by 5% YoY, from P3.1 billion to P3 billion. On a stand-alone basis, it recorded net income of P6.1 billion for the relevant period, down 5% from the P6.4 billion earned in the corresponding period last year. The decrease was the result of lower contributions from CitySavings.
Food
AEV’s non-listed food subsidiaries (Pilmico Foods Corporation, Pilmico International Pte. Ltd., and Gold Coin Management Holdings Limited) reported net income of P1.5 billion, 26% higher than the P1.2 billion recorded last year. Gains from Pilmico’s Flour and Farms divisions contributed to the increase, as well as from Pilmico International, which recently acquired Singaporean agribusiness company Gold Coin.
Infrastructure
Republic Cement’s income contribution to AEV amounted to P221 million, a decrease of 12% YoY from the P249 million reported last year. Despite slight improvement in prices due to government infrastructure and stable private sector demand, this was offset by significant increases in fuel and power costs.
Land
AboitizLand reported net income of P403 million, 19% higher than the P340 million recorded for the same period last year. The increase in net income for the period was attributed to the growth in top-line contributions from the industrial, residential and commercial BUs, while maintaining operating expenses at levels similar to those in 2017.
