Aboitiz Equity Ventures Inc. said Tuesday net income dropped 16 percent year-on-year to P18 billion in the first nine months as non-recurring gains dropped significantly this year.
The listed investment holding company of the Aboitiz Group said non-recurring gains during the January-September period this year total P738 million, down sharply from the P5.3 billion recorded in the same period last year. Without these one-off gains, Aboitiz Equity said core net income for the first nine months of 2023 was ₱17.3 billion, an 8 percent increase year-on-year.
For the third quarter alone, net income dropped 21 percent to P7.6 billion as one-off items recognized during the period due mainly to foreign exchange gains total P1.4 billion, lower than the P2.6 billion booked in the same period last year.
The power business led by Abotiz Power Corp. accounted for 70 percent of Aboitiz Equity’s total income while financial services that included Union Bank of the Philippines contributed 20 percent.
Income contributions from infrastructure, real estate, and food from Aboitiz Equity’s strategic business units were at 4 percent, 4 percent, and 3 percent, respectively.
Aboitiz Power Corp. saw its 9-month net income surging 37 percent to P26.7 billion higher electricity sales due mainly from fresh contributions from GNPower Dinginin Ltd. Co. Capacity sold during the period rose 19 percent to 4,705 megaWatts while electricity sold rose 21 percent to 26,493 gigaWatt-hours. A little over half, or P13.9 billion, of Aboitiz Power’s income was contributed to Aboitiz Equity’s net profit for the period.
Union Bank, meantime, contributed 22 percent less to Aboitiz Equity’s net income at P4 billion as the lenders net profit took a hit from a 63 percent surge in operating expenses to P33.5 billion due to the full -year impact of the acquired Citi consumer business and UnionDigital.
Aboitiz InfraCapital, Inc.’s income contribution rose 17 percent to P1.4 billion on robust lot sales and incremental contributions from the water, and airport business units.
Abotiz Equity said its share in the loss of Republic Cement and Building Materials, Inc. was P592 million, a reversal from P48 million income last year.
The loss was due to lower market demand for cement on account of higher inflation, delays in the rollout of government projects, and unfavorable weather conditions in the Visayas and Mindanao.
The holding company’s non-listed real estate businesses, consisting of Aboitiz Land, Inc. and its subsidiaries, reported a consolidated net income rose 5 percent to P716 million due to lower operating and project costs and gains from the sale of properties.
The non-listed food units including Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd. increased its income contribution by 92 percent to P499 million, fully recovering from the loss seen in the first quarter.
