Aboitiz Equity Ventures Inc. (AEV), the Aboitiz Group’s investment arm, reported a 22 percent improvement in consolidated net income to P4.9 billion for the first quarter of 2024 from the P4.0 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said that, excluding non-recurring net loss of P54 million, its core net income for the first quarter of 2024 was P5.0 billion, eight percent higher than the core net income of P4.6 billion during the corresponding period in 2023.
“The first quarter of the year has been an exciting one for the Aboitiz Group, as we continue to build on our strong foundation of sustainable growth,” said Aboitiz Group President and CEO Sabin M. Aboitiz.
He noted that, “With the successful acquisition of the Coca-Cola business, we are well-positioned to capitalize on new opportunities and expand our reach in the market.
“Our financial performance this quarter reflects the hard work and dedication of our team, and we look forward to continued success in the months ahead.”
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first quarter of 2024 amounted to P4.2 billion, seven percent higher than the P3.9 billion recorded in the same period in 2023.
Power accounted for 67 percent of the total net income contributions from AEV’s Strategic Business Units (SBU) in the first quarter of 2024, while Financial Services accounted for 16 percent.
Net income contributions from Food and Beverage, Real Estate, and Infrastructure SBUs were at 15 percent, five percent, and -3 percent, respectively.
On a stand-alone basis, AboitizPower’s core net income for the first quarter of 2024 was P7.8 billion, three percent higher than the P7.6 billion recorded in 2023. Its reported net income for the first quarter of 2024 was P7.9 billion, four percent higher than the reported net income of P7.5 billion in 2023.
Union Bank of the Philippines’ net income contribution to AEV in the first quarter of 2024 amounted to P978.3 million, 44 percent lower than the P1.8 billion recorded in the same period in 2023.
On a stand-alone basis, UnionBank and its subsidiaries recorded a net income of P2.0 billion in the first quarter of 2024.
Aboitiz Land, Inc. reported a consolidated net income of P280 million in the first quarter of 2024, more than double the P127 million recorded in the same quarter in 2023.
This was attributable to higher revenues generated mainly by the newly launched phases in Pristina and Priveya in 2023, along with additional revenues from higher spot sales in 2024.
Aboitiz InfraCapital, Inc.’s income contribution to AEV in the first quarter of 2024 amounted to P72 million, an 81 percent drop from the P375 million recorded in the same quarter in 2023.
This was mainly the result of higher interest expense from Aboitiz InfraCapital, Inc.’s increased debt availments for its expansion.
AEV’s share in Republic Cement & Building Materials, Inc.’s loss in the first quarter of 2024 amounted to P228 million, lower than the P296 million loss recorded in the same period in 2023.
Although margins slightly improved as a result of lower costs in the first quarter of 2024, relative to the first quarter in 2023, Republic Cement still incurred a loss as sales volume and selling prices still declined YoY due to weak market demand for cement.
Net income contribution from the Food and Beverage segment, which includes Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd., and Coca-Cola Beverages Philippines, Inc. (CCBPI), was P935 million in the first quarter of 2024, a reversal from the P534 million loss recorded in the same period in 2023.
This reversal was primarily driven by the Food Group’s Flour and Agribusiness divisions, which continued to benefit from stabilizing commodity prices and strategic selling prices adjustments, and fresh contributions from CCBPI, which AEV acquired on February 23, 2024.