Aboitiz Equity Ventures Inc., a diversified investment holding company, said Tuesday net income last year declined 9 percent year-on-year to P24.8 billion, dragged down by the lower share in energy unit Aboitiz Power Corp.
Aboitiz Equity reduced its stake in Aboitiz Power to 52 percent at the end of 2021 from 77 percent as part of its transformation strategy, which saw it entering into a strategic partnership with JERA Asia Private Ltd. and ceding part of its interest in the power company. Net income would have been 5 percent higher if the company’s stake in Aboitiz Power stayed the same.
The holding company recognized non-recurring gains of P3.5 billion in 2022, primarily due to foreign exchange gains from the revaluation of US dollar cash and liquid financial instruments. In 2021, it booked P527 million in non-recurring gains. Without these one-off gains, Aboitiz Equity’s net income for 2022 would have been P21.3 billion, down 21 percent on year.
Aboitiz Power accounted for 62 percent of the total income contributions from Aboitiz Equity’s strategic business units in 2022, while financial services accounted for 27 percent. Income contributions from real estate, food, and infrastructure SBUs were at 11 percent, zero, and negative 1 percent, respectively.
“As we closed another transformative year for the Aboitiz Group, our techglomerate continues to take shape, not just in our financial reports, but also in the major culture shifts taking place within our organization. We will continue to focus our energy and resources on strategic innovation and, more importantly, on people and talent,” Aboitiz Group president and chief executive officer Sabin Aboitiz said in a statement.
Aboitiz Equity holds, among others, stakes in Union Bank of the Philippines, City Savings Bank, Pilmico Foods, AboitizLand, and Aboitiz InfraCapital.
