Aboitiz Equity Ventures Inc. reported a 243 percent growth in net income for the first half of 2021 to P13.5 billion from the P3.9 billion earned in the same period last year as all its businesses bounced back.
In a disclosure to the Philippine Stock Exchange, the firm said it recognized non-recurring losses of P169 million compared to the P20 million in non-recurring losses recorded during the same period in 2020, 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 half of 2021 was P13.6 billion, a 246 percent increase year-on-year.
Power accounted for 53 percent of the total income contributions from AEV’s Strategic Business Units (SBU) during the first half of 2021, while Financial Services accounted for 28 percent.
Income contributions from Infrastructure, Food, and Real Estate SBUs were at 9 percent, 7 percent, and 3 percent, respectively.
“The Aboitiz Group’s positive performance in the first half is a solid foundation for optimism that our country is on the right track to economic recovery,” said Aboitiz Group President and CEO Sabin M. Aboitiz.
He added that, “Looking ahead, we see some headway in our own strategic growth objectives and the new CREATE law should enable businesses to make even more significant strides to regain lost ground.”
However, Aboitiz noted that, “we know the COVID-19 Delta variant remains a very real threat so we have to be cautious in our next steps. Our most important priority remains the safety and wellbeing of our team members as we begin our company’s own vaccination program.”
Aboitiz Power Corporation’s (AboitizPower) income contribution to AEV for the first half of 2021 amounted to P7.8 billion, 171 percent higher than the P2.9 billion recorded during the same period in 2020.
Union Bank of the Philippines’ income contribution to AEV for the first half of 2021 amounted to P4.2 billion, 92 percent higher than the P2.2 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.) income contribution to AEV amounted to P1.1 billion for the first half of 2021, 35 percent higher than the P795 million recorded in the same period in 2020.
The Farms business segment reported net income of P281 million during the first half of 2021, recovering from a net loss of P510 million for the same period in 2020, due to recovery of selling prices as the spread of the African Swine Fever negatively impacted the supply of pork in the market.
The Feeds business segment recorded net income of P643 million during the first half of 2021, 43 percent lower YoY on the back of rising raw materials costs.
The Flour business segment recorded P285 million in net income for the first half of 2021, 18 percent lower than the corresponding period in 2020, on the back of lower by-product contributions, in addition to higher operating and administration costs.
Aboitiz Land, Inc. and its subsidiaries reported a consolidated net income of P385 million for the first half of 2021, recovering from P39 million in losses recorded in the same period in 2020.
Republic Cement & Building Materials, Inc.’s income contribution to AEV for the half of 2021 amounted to P1.3 billion, recovering from the P10 million in losses recorded in the same period in 2020.
This was primarily due to stronger market demand driven by the residential and infrastructure segments, as well as reduced costs and increased overall efficiency.