Aboitiz Group’s income slipped 30% to P15.4 billion in 2020 amid pandemic

Aboitiz Equity Ventures Inc. said Monday it posted net income of P15.4 billion in 2020, down 30 percent from a P22-billion profit it generated in 2019.

The company said in a disclosure to the stock exchange it recognized non-recurring losses of  P477 million last year against  P516 million in non-recurring gains in 2019.

It said that without these one-off losses, AEV’s core net income in 2020 reached  P15.9 billion, 26 percent lower than P21.5 billion in 2019.

“In 2020, the Aboitiz Group, like all other business organizations in our country, faced not only the unprecedented challenges brought on by the COVID-19 pandemic but also the normal run-of-mill issues that normal times bring. Through the many uncertainties, our business units stayed focused on ensuring we deliver uninterrupted vital services to our customers and communities,” Aboitiz Group president and chief executive Sabin Aboitiz said.

AEV recorded a consolidated net income of  P7.1 billion in the fourth quarter, up 13 percent from P6.3 billion a year earlier.

Core net income in the fourth quarter reached P7.6 billion, up 34 percent increase year-on-year.

“Careful consideration of our future growth led us to significantly reduce our capital expenditure budgets and prioritize essential projects supported by our strong balance sheet. Early adoption of digital transformation allowed us to seamlessly transition work processes from the physical environment to virtual platforms. These initiatives form important elements in improving our ESG performance through our sustainability programs,” Aboitiz said.

“As we have done for 100 years, all our decisions will continue to be guided by our time-honored values of integrity, teamwork, innovation, and responsibility. We remain committed to our brand promise of advancing business and communities. This is our commitment as a proactive participant in working hand in hand with our government on the path to economic recovery in 2021 and beyond and for the long haul,” Aboitiz said.

Power accounted for 52 percent of the total income contributions from AEV’s strategic business units in 2020, while financial services accounted for 32 percent.

Income contributions from food, infrastructure and real estate SBUs were at 12 percent, 2 percent, and 2 percent, respectively.

Aboitiz Power Corp. posted a net income of P12.6 billion last year, 27 percent lower than P17.3 billion in 2019.

Income contribution of Union Bank of the Philippines amounted to P5.9 billion, 18 percent lower than P7.2 billion in the previous year.

Topics: Aboitiz Equity Ventures Inc. , COVID-19 pandemic , capital expenditure
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