Aboitiz Equity Ventures Inc. (AEV), the active portfolio manager of the Aboitiz Group, is carefully weighing its options on whether to increase prices or accept lower margins depending on how consumer spending is affected by the consequences of the Middle East conflict.

In a media briefing after the firm’s annual stockholders’ meeting (ASM) last Monday, April 27, Aboitiz Group President and Chief Executive Officer (CEO) Sabin M. Aboitiz said the group’s priorities remain anchored on protecting and growing shareholders’ capital over the long term.

“At the end of the day, it always comes down to our people—their leadership, discipline, and commitment to doing things the right way. We are building a business that is not only positioned for growth, but prepared for volatility,” he said.

AEV Senior Vice President and Chief Financial Officer (CFO) Jose Emmanuel U. Hilado said, “The immediate impact, so far, has centered on the increasing cost of logistics and packaging materials, which would eventually require higher expenses.”

“How this can be passed on, or recovered, would be a function of how consumers react. If consumer spending weakens, this could affect either margins or sales volume. But this is still an evolving situation and really depends on when the Middle East crisis will be resolved,” he added.

Hilado said the group has allocated ₱88.5 billion in capital expenditures (capex), lower than the ₱105 billion earmarked last year.

Of this, ₱62 billion will be for Aboitiz Power Corp. (AboitizPower) as it continues to expand its generation portfolio, while ₱8.8 billion, or double its capex last year, is allocated to infrastructure investments across towers, water, and airports.

The balance of the capex will support expansion in feed mill assets, economic estates, development enhancements to Union Bank of the Philippines’ (UnionBank) digital infrastructure, and routine business maintenance requirements.

Across its portfolio, the group will continue to strengthen the operations of its core businesses while advancing strategic growth initiatives.

AboitizPower is optimizing its generation mix and advancing its renewable energy pipeline, supported by investments in battery storage and baseload capacity. Its planned 25-percent stake in Vietnam’s Van Phong Power Co. Ltd., subject to approvals, marks a step toward geographic diversification and long-term contracted capacity.

UnionBank expects net revenues to continue expanding, driven by customer growth and improving net interest margins while maintaining discipline in credit and risk management. Ongoing investments in digital infrastructure and automation are expected to enhance efficiency and support long-term returns.

Aboitiz InfraCapital is scaling its infrastructure platform with a focus on asset optimization and disciplined expansion. Its partnership with Global Infrastructure Partners (GIP) is expected to strengthen capital capacity and bring global expertise.

In the food and beverage sector, Aboitiz Foods continues to execute its dual transformation strategy, focusing on cost efficiency, innovation, and integration.

Coca-Cola Beverages Philippines supports this growth through expanded capacity and sustained execution, including a new production facility in Tarlac province set for completion in 2027, alongside continued sustainability initiatives.

The integration of Aboitiz Land Inc. and Aboitiz Economic Estates into a unified real estate platform strengthens the group’s ability to deliver more complete and sustainable communities, combining industrial, commercial, and residential developments.

Aboitiz Construction Inc. is also pursuing a full-fledged expansion of its capabilities in industrial maintenance and equipment rental services to strengthen its presence in the industry.