The board of Aboitiz Equity Ventures Inc. approved the extension of Sabin Aboitiz’s term as group president and chief executive until Dec. 31, 2027 from the original scheduled retirement date of Dec. 31, 2024.
The board’s vote of confidence for Aboitiz comes as AEV and its business units are targeting recovery after the widespread economic disruption caused by the COVID-19 pandemic.
“These times have indeed been extraordinary and unexpected, and the Aboitiz Group has managed to adapt and respond to them by learning from the lessons of 2020 and always working to become a future-ready organization with the commitment, passion, innovation, and resilience of our leaders and team members,” AEV chairman Endika Aboitiz said in a statement.
Sabin Aboitiz took office as the president and CEO of AEV on Jan. 1, 2020, succeeding his brother Erramon Aboitiz.
His first year as chief executive was hailed for his decisive leadership, innovative mindset and ensuring business continuity amid the turbulent economic climate due to the pandemic.
“At the helm of this ship is our captain, AEV president and CEO Sabin Aboitiz, who has proven to be a leader who can steer us wisely and resolutely in the right direction, through turbulent waters toward a safe and prosperous harbour in the years to come,” the chairman said.
“Under his watch, the group was able to ensure the safety and wellbeing of our team members—the lifeblood of our organization—and that delivery of our vital products and services to communities remained unhampered,” Endika said.
The Aboitiz Group posted a consolidated net income of P7.8 billion in the first quarter, a 276-percent increase from P2 billion in the same period in 2020.
Core net income surged 243 percent in the first quarter to P7.8 billion after it recognized non-recurring losses of P219 million during the period, compared to P262 million in non-recurring losses in the same period in 2020, which were primarily due to the goodwill write-off related to City Savings Bank Inc.
Power accounted for 58 percent of the total income contributions from AEV’s strategic business units in the first quarter, while financial services accounted for 29 percent.
Income contributions from food, infrastructure and real estate SBUs were at 8 percent, 4 percent and 1 percent, respectively.
“The first quarter of 2021 is solid proof that the Aboitiz Group is already making headway in its recovery and growth plans for the year. I can never emphasize enough the crucial role that our A-People, with their unwavering passion and resilience, have played in pushing our organization to thrive in times of great uncertainty,” said Sabin Aboitiz.