Holding firm Aboitiz Equity Ventures Inc. (AEV) reported a four percent improvement in consolidated net income to P18.8 billion for the first nine months of 2024, from the P18 billion reported for the first nine months of 2023.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said its core net income, which excludes non-recurring foreign exchange losses of P20 million, was nine percent higher at P18.8 billion compared to the P17.3 billion during the corresponding period in 2023.
For the third quarter alone, the company recorded consolidated net income of P7.3 billion in 2024, a four percent decrease from the P7.6 billion reported for the same quarter of 2023.
Excluding non-recurring net foreign exchange losses of P104 million, AEV’s core net income for the third quarter of 2024 was P7.4 billion, which was 20 percent higher than its core net income of P6.2 billion during the corresponding period in 2023.
"AEV's overall performance was positive especially if we focus on core net income. A particularly bright spot was the strong profit contribution of Aboitiz Foods, which should continue to do well as inflation stabilizes and household consumption recovers," said Chinabank Capital Corporation Managing Director Juan Paolo Colet.
Power accounted for 64 percent of the total net income contributions from AEV’s Strategic Business Units (SBU) for the first nine months of 2024, while Financial Services and Food and Beverage SBUs each accounted for 19 percent.
Net income contributions from Real Estate and Infrastructure SBUs were at two percent and -4 percent, respectively.
“Our third-quarter results reflect not only the strength of our diversified businesses but also the positive momentum we are seeing in the broader economy,” said Aboitiz Group President and CEO Sabin M. Aboitiz.
He added that "with inflation moderating and recent rate cuts providing relief, we are optimistic about the opportunities ahead. These improving macroeconomic conditions will allow us to continue to create long-term value for our stakeholders and to contribute to the economic growth of our country."
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first nine months of 2024 amounted to P14.5 billion, four percent higher than the P13.9 billion recorded during the same period in 2023.
On a stand-alone basis, AboitizPower’s beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 12 percent year-on-year to P56.1 billion for the first nine months of 2024.
Net income contribution from Union Bank of the Philippines amounted to P4.2 billion for the first nine months of 2024. This was four percent higher than the P4 billion recorded in the same period in 2023.
On a stand-alone basis, UnionBank recorded a net income of P8.6 billion for the first nine months of 2024. This was six percent higher than the P8.1 billion recorded during the same period in 2023.
Aboitiz Land Inc. and its subsidiaries reported a 27 percent drop in consolidated net income to P521 million for the first nine months of 2024 from the ₱716 million recorded during the same period in 2023.
This was primarily due to the higher operational expenses and overhead costs and asset monetization in 2023.
Net income contribution from the Food and Beverage segment, collectively called Aboitiz Foods, and Coca-Cola Beverages Philippines, Inc. (CCBPI), was P4.2 billion for the first nine months of 2024. This is more than eight times higher than the P499 million recorded during the same period in 2023.
This was primarily driven by the Aboitiz Foods’ Flour and Agribusiness divisions, which continued to benefit from stabilizing commodity prices, optimized formulations in both feeds and flour, strategic selling prices adjustments, and fresh contributions from CCBPI.
Aboitiz InfraCapital, Inc. recorded a net loss of P148 million income contribution to AEV for the first nine months of 2024, a reversal from the P1.4 billion profit recorded in the same period in 2023, which included P1.2 billion of non-recurring gain.
AEV’s share in Republic Cement & Building Materials, Inc.’s loss for the first nine months of 2024 amounted to P726 million.
This was higher than its share of losses during the same period in 2023, which amounted to P592 million, as sales volume and selling prices continued to decline year-on-year due to weak market demand for cement.