Executives of the Aboitiz Group are both “cautious and optimistic” in doing business, as the conglomerate’s profits in the first 9 months of 2020 plunged 47% amid the coronavirus crisis.

Aboitiz Equity Ventures (AEV) reported a net income of P8.3 billion during the period, much lower than the P15.7 billion it posted in the same period a year ago.

It saw some recovery in the 3rd quarter with profit fallout at 35%, slowing down from the 63% plunge in the 2nd quarter.

“Despite the headwinds of the first 9 months, the Aboitiz Group’s business continuity plans have proven effective and will remain in place as we continue to exhibit resilience in our operations toward the end of the year,” said Sabin Aboitiz, president and chief executive officer of the Aboitiz Group.

Here are some financial highlights of the conglomerate:

Aboitiz Power Corporation

Aboitiz Power’s core net income for January to September stood at P6.5 billion, 53% lower than in the same period last year.

Its income contribution to AEV fell by 48% from P10.4 billion to P5.4 billion.

Demand was lower by 8% due to the pandemic.

Aboitiz Power is planning on shifting its overall energy mix into almost 50-50 thermal and “Cleanergy” capacities by 2030.

Union Bank of the Philippines

UnionBank’s net income stood at P8.5 billion in the first 9 months of the year, 1% lower than the P8.6 billion in the corresponding period last year, as it jacked up loan loss buffers.

Loan loss provisions amounted to P7.5 billion.

The bank said it expects a flat loan and asset growth for the banking industry in 2020, “given the continued weakness in the country’s economy and a slower demand for credit until the end of the year.”

Food units

AEV’s non-listed food subsidiaries – Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International – contributed P969 million to the conglomerate during the first 3 quarters, 5% lower than the P1 billion a year ago.

Its farm business also posted a net loss of P703 million due to higher production costs and the industry-wide effect of the African swine fever.

The company said its planned expansions in Northern Luzon have been “recalibrated” in 2020 and it has started looking for opportunities in the Visayas and Mindanao.

AboitizLand

AboitizLand reported a net income of P85 million during the 9-month period, 90% lower than the P829 million a year ago.

Its residential business contributed the most revenues at P715 million.

Republic Cement and Building Materials

Republic Cement’s net income fell 37% to P400 million. 

This was due to the dramatic slowdown in construction activities during the nationwide lockdowns. – Rappler.com