Aboitiz Equity Ventures Inc. recorded a 276 percent surge in consolidated net income to P7.6 billion for the first quarter of 2021 from the P2.0 billion reported in the same period in 2020.
In a disclosure to the Philippine Stock Exchange, the firm said it recognized non-recurring losses of P219 million during the period under review, compared to the 262 million in non-recurring losses for the corresponding period in 2020, which was primarily due to the goodwill write-off related to City Savings Bank, Inc.
Without these one-off losses, AEV’s core net income for the first quarter of 2021 was P7.8 billionn, a 243 percent increase year-on-year (YoY).
Power accounted for 58 percent of the total income contributions from AEV’s Strategic Business Units (SBU) during the first quarter of 2021, while Financial Services accounted for 29 percent.
Income contributions from Food, Infrastructure, and Real Estate SBUs were at 8 percent, 4 percent, and 1 percent, respectively.
“The first quarter of 2021 is solid proof that the Aboitiz Group is already making headway in its recovery and growth plans for the year,” said Aboitiz Group President and CEO Sabin M. Aboitiz.
He added that, “Together with our team members, we will continue to explore better ways of working to sustain our businesses as we drive change for a better world by advancing business and communities.”
Aboitiz noted that, “Our early initiatives on innovation and digitalization propelled the organization’s business continuity at the onset of the pandemic and we are prepared and committed to see our businesses through with the same growth pathway and trajectory.”
Aboitiz Power Corporation’s net income contribution to AEV for the first quarter of 2021 increased by 200 percent YoY, from P1.6 billion to P4.8 billion.
Union Bank of the Philippines’ income contribution to AEV for the first three months of 2021 amounted to P2.4 billionn, 79 prcent higher than the ₱1.3 billion recorded during the same period in 2020.
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd. – which includes Gold Coin Management Holdings Pte. Ltd.) income contribution to AEV amounted to P630 million for the first quarter of 2021, 262 percent higher than the P174 million recorded in the same period in 2020.
The Farms business segment reported net income of P153 million during the first quarter of 2021, bouncing back from a net loss of P345 millionn for the first quarter of 2020 due to increased profits from the recovery of selling prices as the spread of the African Swine Fever lowered the supply of pork in the market.
The Feeds business segment recorded a 17 percent drop in net income to P355 million during the first quarter of 2021 as increased raw material costs offset the improvement in average selling prices.
The Flour business segment recorded P188 million in net income for the first three months of 2021, 2 percent higher than the same period in 2020, on the back of improved per unit gross profit and volume.
AEV’s non-listed real estate businesses, comprising AboitizLand, Inc. reported a consolidated net income of P101 million for the first quarter of 2021, recovering from P110 million in losses recorded in the same period in 2020.
Republic Cement & Building Materials, Inc.’s income contribution to AEV for the first quarter of 2021 amounted to P334 million, 446 percent higher than the P61 million recorded in the same period in 2020.
This was primarily due to the ramp up in sales volume resulting from new cement capacities in Bulacan and Iligan, reduced costs, and increased overall efficiency.