Aboitiz Equity Ventures Inc. reported a 54 percent drop in consolidated net income to P3.9 billion for the first quarter of 2022 as against P8.6 billion earned during the corresponding period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it recognized non-recurring gains of P766 million during the period, primarily due to foreign exchange gains from the revaluation of dollar-denominated assets, compared with P211 million in non-recurring losses for the same period in 2021.
Without these one-off gains, AEV’s core net income for the first quarter of 2022 was P3.2 billion, a 64 percent decrease year-on-year (YoY). Earnings before interest, tax, depreciation and amortization (EBITDA) declined 28 percent to P13.0 billion YoY.
Excluding extraordinary items such as liquidated damages, business interruption claims, Typhoon Odette, advanced outage, as well as extraordinary trading gains, net income for the first quarter of 2022 would have been lower by only 4 percent compared with same period in 2021.
In addition, as part of its transformation strategy, AEV’s ownership (and therefore share in earnings) in Aboitiz Power Corporation declined from 77 percent to 52 percent effective end of 2021 as a result of its strategic partnership with JERA, and this was reflected in the results for the first three months of 2022.
Power accounted for 41 percent of the total income contributions from AEV’s Strategic Business Units (SBU) in the first quarter of 2022, while Financial Services accounted for 36 percent.
Income contributions from Food, Real Estate, and Infrastructure SBUs were at 14 percent, 4 percent, and 4 percent, respectively.
Aboitiz Group President and CEO Sabin M. Aboitiz said “2022 started with a strong sense of optimism coming out of the pandemic with the reopening of borders, resumption of travel, and reduction of cases through vaccination—all resulting in economic recovery in the first quarter.”
“As always, these highly effective defense mechanisms are driven for and by our people first, and will be further enhanced at an unprecedented scale and speed by our Great Transformation into a conglomerate that operates with the sensibility of a startup, using innovation, technology, and fast-forward thinking to turn disruption into opportunity,” he added.
AboitizPower’s income contribution to AEV for the first quarter of 2022 amounted to P1.5 billion, 69 percent lower than the P4.9 billion recorded in the first quarter of 2021.
On a stand-alone basis, AboitizPower’s net income for the first quarter of 2022 was P2.9 billion, 53 percent lower than the P6.2 billion recorded in the corresponding period in 2021.
Union Bank of the Philippines’ income contribution to AEV in the first quarter of 2022 amounted to P1.3 billionn, 44 percent lower than the P2.4 billion recorded in the first quarter of 2021.
On a stand-alone basis, UnionBank and its subsidiaries recorded net income of P2.6 billionn in the first quarter of 2022, 45 percent lower YoY due to extraordinary trading gains recorded in the first quarter of 2021.
AEV’s non-listed food subsidiaries’ income contribution amounted to P502 million in the first quarter of 2022, 31 percent lower than the P724 million recorded in the same period in 2021.
Aboitiz Land, Inc. and its subsidiaries and Lima Land, Inc. reported a consolidated net income of P390 million in the first quarter of 2022, 48 percent higher than the P264 million recorded in the same period in 2021.
AboitizLand contributed P1.3 billion in revenues for the first quarter of 2022, 86 percent higher than revenue contributions in the same period in 2021.
For the Infrastructure group, Republic Cement & Building Materials, Inc.’s income contribution to AEV in the first quarter of 2022 amounted to a loss of P18 million compared to P874 million income recorded in the first quarter of 2021.
This was primarily due to lower market demand for cement due to the increase in prices of steel and other construction materials.