Aboitiz Equity Ventures Inc. on Tuesday reported net income in 2023 falling 2 percent to P23.5 billion from previous year’s P24 billion. The diminution was traced to non-recurring foreign exchange gains reported in 2022.
Net income in the fourth quarter last year alone reached P5.5 billion, double the P2.7 billion AEV reported in prior year.
Power accounted for 67 percent of AEV’s total net income in 2023, while financial services accounted for 18 percent, and earnings from infrastructure, food and real estate units were at 6 percent, 5 percent and 4 percent, respectively.
“Building on our resilience and steady core performance, we are ready for another exciting phase of growth and innovation. Our acquisition of Coke’s bottling operations with our partner at Coca Cola European Partners accelerates our diversification into the consumer market,” company president and CEO Sabin M. Aboitiz said.
The investment of AboitizPower in gas projects with Metro Pacific Investments Corp. and San Miguel Global Power helps diversify its energy mix as the business transitions to cleaner energy.
The net income contribution of Aboitiz Power Corp. to AEV in 2023 amounted to P17.3 billion, 28 percent higher than the prior year’s P13.5 billion.
Union Bank of the Philippines income contribution of P4.5 billion proved 29 percent lower than the P6.3 billion in prior year while that from Aboitiz InfraCapital Inc. of P2.4 billion proved 26 percent higher than only P1.9 billion in 2022.
This was the result of higher land sales and lease income from its economic estates and incremental contributions from the airports business segment.
AEV’s share in Republic Cement and Building Materials Inc.’s loss reached P789 million, more than double the P323 million losses recorded in 2022. This was due to lower sales volume attributed to weak demand for cement due to higher inflation, delays in the rollout of government projects and unfavorable weather conditions in the Visayas and Mindanao, which are big markets, at the beginning of 2023.
AEV food subsidiaries that include Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd., which houses Gold Coin Management Holdings Pte. Ltd., contributed P1.3 billion, a reversal from the loss of P14 million in 2022.
The turnaround was due to better margins from its flour and agribusiness segments driven by lower raw materials costs and better pricing strategy, the company said.
“These gains were partially offset by the lower contributions from the farms and meats segments, which was dragged down by the lower selling prices for both live hogs and meats combined with higher production costs pertaining to the carrying costs of underutilized farms,” the company said.
AEV’s real estate businesses, consisting of Aboitiz Land Inc. reported a consolidated net income of P1.0 billion in 2023, 19 percent higher than previous of only P865 million.
