CEBU-BASED conglomerate Aboitiz Equity Ventures, Inc. (AEV) reported a core net income of P6.4 billion for the second quarter.
This figure represents a 1% decline from P6.5 billion in the same period last year, the conglomerate said in a regulatory filing on Thursday. The complete financial statement has not yet been made available.
Meanwhile, the conglomerate’s consolidated net income for the quarter was P6.6 billion, a 2% increase year over year.
“Power accounted for 65% of the total net income contributions from AEV’s strategic business units (SBU) for the first half of the year, while food and beverage accounted for 20%,” it noted.
“Net income contributions from financial services, real estate, and infrastructure SBUs were at 18%, 3%, and -5%, respectively,” AEV added.
The conglomerate saw a 10% increase in its consolidated net income to P11.5 billion for the first half, compared with P10.5 billion last year.
Excluding a nonrecurring net gain of P83 million, AEV logged a 2% increase in its core net income for the period, reaching P11.4 billion, up from P11.1 billion in 2023.
Aboitiz Land, Inc. reported a 14% increase in its first-half consolidated net income, reaching P445 million, up from P389 million in 2023.
“This was attributable to higher revenues from the newly launched phases in Pristina and Priveya in 2023, along with additional revenues from higher spot sales and more units sold for the first half of 2024,” the conglomerate said.
The first-half net income contribution from AEV’s food and beverage segment reached P2.8 billion, up more than 15 times from P181 million last year.
The food and beverage segment includes Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., which houses Gold Coin Management Holdings Pte. Ltd. and Coca-Cola Beverages Philippines, Inc. (CCBPI).
“This 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, and fresh contributions from CCBPI, which AEV acquired on Feb. 23,” the conglomerate said.
Aboitiz Power Corp. contributed P9.1 billion to the conglomerate’s first-half net income, down 2% from P9.3 billion last year.
On a stand-alone basis, the company’s net income dropped 4% to P17.1 billion due to the recognition of depreciation and interest for subsidiary GNPower Dinginin Ltd. Co.’s Unit 1 and Unit 2.
First-half earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8% to P36.3 billion due to higher generation portfolio margins.
Union Bank of the Philippines, Inc. posted a 23% decline in its first-half net income contribution, falling to P2.5 billion.
The company recorded a stand-alone net income of P5.1 billion for the first half, down 17% from P6.1 billion last year.
Aboitiz InfraCapital, Inc. reported a P312 million loss for the period, a reversal from the P334 million profit last year, due to higher interest expenses from the company’s increased debt for expansion.
Meanwhile, AEV’s share in the net loss of Republic Cement & Building Materials, Inc. reached P407 million, down 10% from a P452 million loss last year.
“Although margins improved as a result of lower costs for the first half of 2024, relative to the first half of 2023, Republic Cement still incurred a loss as sales volume and selling prices still declined year on year due to weak market demand for cement,” the conglomerate said.
On Thursday, AEV shares rose 1.82% or 65 centavos, ending at P36.30 apiece. — Revin Mikhael D. Ochave