Aboitiz Equity Q1 net plunges 35% to P3.2B

ABOITIZ Equity Ventures Inc. (AEV) saw a 35-percent drop in consolidated net income for the first quarter, from P4.9 billion to P3.2 billion, as some strategic business units reported lower results for the period.

AEV on Wednesday said that its power unit contributed 62 percent to group net income, followed by the food and beverage unit that added 35 percent.

Net income contributions from the financial services, real estate and infrastructure units stood at 17 percent, minus 1 percent and minus 13 percent, respectively.

Aboitiz Power Corp. contributed a net income of P2.5 billion, 39 percent down from last year.

Lower spot market prices and scheduled outages of the Pagbilao, Therma Visayas Inc. and GNPower Mariveles Energy Center plants affected the unit's earnings before interest, taxes, depreciation and amortization, which fell 8 percent to P15.1 billion.

Union Bank of the Philippines, meanwhile, contributed P702.3 million to the group net income, down 28 percent, but stand-alone revenues grew 8 percent to P19.2 billion.

AEV's food and beverage segment — comprising Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd. and Coca-Cola Europacific Aboitiz Philippines Inc. (CCEAP) — contributed P1.4 billion for the period, up 54 percent.

Meanwhile, real estate and infrastructure units Aboitiz Land Inc. and Aboitiz InfraCapital Inc. (AIC), reported weaker performances. Aboitiz Land and its subsidiaries saw a consolidated net loss of P58.3 million due to lower sales and higher forfeitures.

AIC reported a loss of P207 million, attributed to higher interest expenses as a result of increased borrowings to fund expansion.

Similarly, AEV's share in Republic Cement & Building Materials Inc.'s loss widened further to P338.1 million as continuing weak demand for cement resulted in lower sales.

AEV shares on Wednesday dropped by 80 centavos, or 2.4 percent, to close at P32.50 apiece.