Aboitiz Equity Ventures Inc. reported a 135 surge in net income for the first three quarters of 2021 to P19.5 billion from the P8.3 billion recorded during the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it recognized non-recurring gains of P83 million, versus the P5 million in non-recurring losses recorded during the same period in 2020, which were primarily due to the revaluation of dollar-denominated assets.
Without these one-off gains, AEV’s core net income for the first three quarters of 2021 was P19.5 billion, a 133 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 three quarters of 2021, while Financial Services accounted for 26 percent.
Income contributions from Food, Infrastructure, and Real Estate SBUs were at 7 percent, 6 percent, and 3 percent, respectively.
“As we approach the end of 2021, we see the light at the end of the tunnel growing brighter in terms of the pandemic, and the Aboitiz Group’s performance trajectory continues to substantially improve throughout the current health crisis, posting figures that are again much higher than last year’s," said Aboitiz Group President and CEO Sabin M. Aboitiz.
He added that, “Our financial and cultural investments in innovative and agile thinking have paid off handsomely as we powered through the pandemic with strong performance indicators.”
Aboitiz noted that, “This gives us every reason to believe that next year will be even better as COVID cases decrease, vaccinations increase and our new strategic partnership with Jera kicks into gear.”
“As always, our main priority and driving force remains to be our team members, and as we did with the current government, we look forward to working closely with next year’s new administration in defeating the virus by learning to function with it to help our country along the path to economic recovery,” he said.
Aboitiz Power Corporation’s income contribution to AEV for the first three quarters of 2021 amounted to P12.1 billion, 124 percent higher than the P5.4 billion recorded during the same period in 2020.
Union Bank of the Philippines’ income contribution to AEV for the first three quarters of 2021 amounted to P5.4 billion, 26 percent higher than the P4.3 billion recorded during the same period in 2020.
AEV’s non-listed food subsidiaries’ income contribution to AEV amounted to P1.5 billion for the first three quarters of 2021, 54 percenthigher than the P969 million recorded in the same period in 2020.
The Farms business segment reported net income of P385 million during the first three quarters of 2021, recovering from a net loss of P703 million for the same period in 2020.
This can be attributed to the depressed market performance of hogs in the previous year following the spread of African Swine Fever in the country.
The Feeds business segment recorded net income of P1.0 billion during the first three quarters of 2021, 24 percent lower YoY on the back of the continuous rise in raw materials costs.
The Flour business segment recorded P283 million in net income for the first three quarters of 2021, 50 perent lower than the corresponding period in 2020, on the back of lower by- product contributions, in addition to higher operating and administration costs.
AEV’s non-listed real estate businesses, comprising of Aboitiz Land, Inc. reported a consolidated net income of P646 million for the first three quarters of 2021, 665 percent higher than the P85 million recorded in the same period in 2020.
For the Infrastructure group, Republic Cement & Building Materials, Inc.’s income contribution to AEV for the first three quarters of 2021 amounted to P1.4 billion, 247 percent higher than the P400 million recorded in the same period in 2020.
This was primarily due to stronger market demand from the residential and infrastructure segments, as well as capital investments which resulted in increased overall efficiency.
Republic Cement also benefited from a one-time gain brought about by the CREATE bill which reduced its deferred tax liabilities.