ABOITIZ Equity Ventures Inc. (AEV) said Friday its consolidated net income went up 22 percent to P4.9 billion in the first quarter of 2024 from P4 billion in the same period last year.
AEV said in a disclosure to the Philippine Stock Exchange that excluding non-recurring net loss of P54 million, the company’s core net income for the first quarter reached P5 billion, or 8 percent higher than P4.6 billion in the comparative 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. 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,” Aboitiz Group president and chief executive Sabin Aboitiz said.
“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,” he said.
Power accounted for 67 percent of the total net income contributions from AEV’s strategic business units (SBUs), while the financial services represented 16 percent.
Net income contributions from food and beverage, real estate and infrastructure SBUs were at 15 percent, 5 percent and -3 percent, respectively.
Aboitiz Power Corp. posted core net income of P7.8 billion in the first quarter. Its net income reached P7.9 billion, up 4 percent from P7.5 billion a year ago.
“AboitizPower continued its strong performance in the first quarter of 2024, building on its successful 2023. This momentum reflects the effectiveness of our investments and growth strategies, which further reinforces our dedication to providing reliable, affordable, and sustainable power while driving the nation’s development,” AboitizPower president and chief executive Emmanuel Rubio said.
Union Bank of the Philippines’ net income contribution to AEV amounted to P978.3 million, or 44 percent lower than P1.8 billion recorded in the same period in 2023.
UnionBank and its subsidiaries recorded a net income of P2 billion, while net interest income reached P13.4 billion, or 17 percent higher year-on-year as a result of the 14 percent increase in net revenues to P18.4 billion and the bank’s higher net interest margin of 5.7 percent.
The higher margin was attributable to the remarkable growth in consumer loans, which grew by 12 percent year-on-year.
Consumer loans now account for 59 percent of total loan portfolio, which grew by three percent in the first quarter of 2024.
Aboitiz Land Inc. and its subsidiaries reported a consolidated net income of P280 million, or more than double the P127 million recorded in the same quarter in 2023 due to higher revenues from 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 amounted to P72 million, an 81-percent decline as a result of higher interest expense from increased debt availment for its expansion.
AEV’s share in Republic Cement & Building Materials, Inc.’s loss amounted to P228 million, lower than the P296 million loss recorded in the same period in 2023.
Republic Cement still incurred a loss as sales volume and selling prices still declined year-on-year due to weak market demand for cement.
Net income contribution from the food and beverage segment, which includes Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd. (which houses Gold Coin Management Holdings Pte. Ltd.), and Coca-Cola Beverages Philippines, Inc. (CCBPI), was P935 million, a reversal from the P534 million loss recorded in the same period in 2023.
This reversal was driven by the flour and agribusiness divisions which continued to benefit from stabilizing commodity prices and strategic selling price adjustments, as well as fresh contributions from CCBPI, which AEV acquired on Feb. 24, 2024.