File photo from AEV
MANILA, Philippines – Aboitiz Equity Ventures Incorporated (AEV), the holding firm of the Aboitiz Group, saw a slight increase in its net income for the January to March period due to lower one-off foreign exchange losses.
AEV told the Philippine Stock Exchange (PSE) on Thursday, May 3, that its consolidated net income reached P4.8 billion in the 1st quarter of 2018.
The figure is up 3% compared to the P4.7 billion in the same period last year, which the firm attributed "to lower one-off losses representing net unrealized foreign exchange losses."
"Our diversified portfolio gives us the resilience to sail through varying business cycles. The underlying strength of our core operations and a vibrant economy keep us optimistic on our long-term fundamentals," said AEV president and chief executive officer Erramon Aboitiz in a statement.
Power, food down; banking up
Power remained the biggest contributor to AEV's income at 64%, followed by banking & financial services at 30%, food at 6%, land at 1%, and infrastructure at -1%.
The firm's core power arm, Aboitiz Power Corporation (AboitizPower), saw its income contribution to AEV fall 9% year-on-year from P3.4 billion to P3.1 billion. But AboitizPower's core net income rose by 4% to P5.2 billion from P5 billion, due to lower foreign exchange losses.
Union Bank of the Philippines (UnionBank), meanwhile, saw its net income contribution increase from P1.1 billion to P1.4 billion, driven by higher revenues.
The net income contribution of Pilmico Foods Corporation and its subsidiaries also dropped 10% to P264 million from P292 million, due mostly to the higher cost of raw materials and operating expenses.
AboitizLand Incorporated's net income contribution rose by 18% year-on-year to P59 million, amid increased borrowing expenses for the funding of developments.
As for Republic Cement & Building Materials Incorporated, its contribution to AEV decreased 140% year-on-year, from a P202-million net income to a net loss of P82 million. This was mainly due to energy input costs which went up.
AEV's infrastructure division, Aboitiz InfraCapital Incorporated, had been rejected by the government earlier this year after it submitted a P148-billion unsolicited proposal to upgrade and run 4 regional airports.