Aboitiz Equity Ventures Inc. reported a 9 percent improvement in consolidated net income for the first nine months of 2022 to P21.4 billion from the P19.5 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 P5.3 billion, primarily due to foreign exchange gains from the revaluation of US dollar cash and liquid financial instruments, compared to the P83 million in non-recurring gains recorded during the same period in 2021.
Without these one-off gains, AEV’s core net income for the first nine months of 2022 dropped 17 percent to P16.1 billion. EBITDA amounted to P54.0 billion during the first nine months of 2022, 9 percent higher than the P49.5 billion recorded in the same period in 2021.
Power accounted for 58 percent of the total income contributions from AEV’s Strategic Business Units (SBU) during the first nine months of 2022, while Financial Services accounted for 29 percent.
Income contributions from Real Estate, Infrastructure, and Food SBUs were at 10 percent, 1 percent, and 1 percent, respectively.
AboitizPower’s income contribution to AEV for the first nine months of 2022 amounted to P10.1 billion, 16 percent lower than the P12.1 billion recorded in the first nine months of 2021 primarily due to AEV’s reduced ownership.
UnionBank’s income contribution to AEV in the first nine months of 2022 amounted to P5.1 billion, 5 percent lower than the P5.4 billion recorded in the same period in 2021.
AEV’s non-listed real estate businesses, consisting of Aboitiz Land, Inc. and its subsidiaries and Lima Land, Inc., reported a consolidated net income of P1.7 billion in the first nine months of 2022, 167 percent higher than the P646 million recorded in the same period in 2021.
AboitizLand contributed P3.8 billion in revenues for the first nine months of 2022, 30 percent higher than revenue contributions in the same period in 2021.
The residential business segment had the largest contribution to overall revenue at 57 percent while the commercial and industrial segment contributed 43 percent.
AEV’s non-listed food subsidiaries’ income contribution to AEV amounted to P260 million in the first nine months of 2022, 83 percent lower than the P1.5 billion recorded in the same period in 2021.
Despite rising input costs due to sharp increase in commodity prices (Soybean Meal, Wheat, etc.), the food group recorded an EBITDA of P4.2 billion, 14 percent higher YoY due to margin recoveries from its Agribusiness, Farms and Commodity Trading segments.
The Food and Nutrition segment, which consists of the flour, farms, meats, and trading divisions, recorded a net income of P103 million in the first nine months of 2022, 85 percent lower YoY.
This is primarily due to lower taxes recognized for its farm division in the same period last year from tax adjustments pertaining to its 2020 Income Tax Holiday incentives, the Flour division’s weaker margins and higher foreign exchange losses.
The Agribusiness segment, which consists of the regional animal nutrition businesses (feed, petfood, and specialty nutrition), reported a net loss of P78 million in the first nine months of 2022, 108 percent lower YoY.
The decrease was due to the recognition of unrealized foreign exchange losses from the devaluation of the Sri Lankan Rupee and goodwill impairment of its Sri Lanka and Thailand operations.
For the Infrastructure group, Republic Cement & Building Materials, Inc.’s income contribution to AEV in the first nine months of 2022 amounted to P48 million, 97 percent lower than the P1.4 billion income recorded in the first nine months of 2021.
This was due to lower market demand for cement due to pre-election construction ban and post-election transition, global commodity price increase of steel, other construction materials and higher input costs of fuel and electricity.