AEV net income up 3% in 2018
Aboitiz Equity Ventures, Inc. (AEV) posted a 3% increase in its net income for the full year 2018 to P22.2 billion from P21.6 billion in 2017. Its power business unit (BU) remained its biggest income contributor, accounting for 73% while its financial services, food, real estate, and infrastructure BUs pitched in 16%, 7%, 3%, and 1%, respectively.
“We remain confident about the long-term prospects of our businesses in fueling our country’s economic growth, which, in return, generates greater demand for our products and services,” said Erramon I. Aboitiz, AEV President and Chief Executive Officer.
Meanwhile, AEV’s core net income totaled P23.1 billion, 3% lower than the P23.9 billion recorded in 2017. AEV also recorded consolidated earnings before interest, taxes, depreciation, and amortization amounting to P60.7 billion last year, up 6.5% from 2017.
“From investing to meet infrastructure demand to providing innovative solutions to empower small businesses, and through our new multi-country platform, we leverage our capabilities to drive change for a better world by advancing business and communities,” Aboitiz said.
Power
On a stand-alone basis, AboitizPower realized P21.7 billion in net income in 2018, 6% higher compared to 2017. Fresh contributions from Pagbilao Energy Corporation and Hedcor Bukidnon, Inc. for the generation business as well as an increase in consumption levels across all customer segments for the distribution business contributed to the year-on-year (YoY) profit gain.
Banking & Financial Services
On a stand-alone basis, UnionBank recorded a net income of P7.3 billion in 2018, down 13% from the P8.4 billion earned the previous year. As of end-December 2018, UnionBank’s total assets reached P673.8 billion, 8% higher YoY, as loans and other receivables grew by 16%, from P280.2 billion to P326.1 billion due to double-digit growth across all customer businesses, except thrift arm CitySavings.
Food
Pilmico reported a net income of P1.6 billion for 2018, an 8% decrease from the P1.7 billion recorded in 2017, due mostly to YoY declines from Feeds Philippines which suffered from higher raw materials costs and from Farms which incurred lower asset revaluation gains. Meanwhile, Flour business segment’s net income increased by 52% YoY to P299 mn, on the back of better commodity and foreign exchange positioning. In addition, AEV International Pte. Ltd. reported a consolidated net income of P234 million in 2018, a 142% increase from the previous year. This increase was primarily due to fresh contributions from Gold Coin Management Holdings, Pilmico’s newly-acquired feeds business in the Asia-Pacific region.
Land
AboitizLand reported net income of P645 million in 2018, 13% lower than the P744 million recorded in 2017. The decrease was due to the absence of fair valuation gains on investment properties in 2018 despite enjoying higher revenues.
Infrastructure
Republic Cement’s income contribution to AEV in 2018 amounted to P213 million, 68% lower than the P671 million posted in 2017. This was brought about mainly by significantly higher fuel and power costs, which offset the improvement in prices due to government infrastructure spending and stable private sector demand.
