ABOITIZ EQUITY VENTURES, INC.: AEV ends first semester with P10.1 billion profit

Aboitiz Equity Ventures, Inc. issued the following announcement on Aug. 1.

On a year-to-date (YTD) basis, Aboitiz Equity Ventures, Inc.’s (AEV’s) net income for the first half of 2018 stood at P10.1 billion, 2% lower than the P10.3 billion recorded last year. The company recognized non-recurring losses during the period amounting to P467 million versus last year’s losses of P495 million, representing net foreign exchange losses recognized on the restatement of dollar-denominated net debt.

Power accounted for 68% of total income contributions, followed by Banking and Financial Services (22%), Food (6%), Land (3%), and Infrastructure (1%).

“Our first half results reflect challenges that continue to test the resilience of our diversified portfolio,” explained Erramon I. Aboitiz, AEV President and Chief Executive Officer.

Aboitiz Power Corporation’s net income contribution to AEV during the first half of 2018 decreased by 6% YoY, from P7.5 billion to P7 billion. At 100%, AboitizPower’s net income amounted to P9.1 billion, also 6% lower YoY.

Union Bank of the Philippines’ income contribution to AEV for the first half of 2018 increased by 9% YoY, from P2.1 billion to P2.3 billion. On a stand-alone basis, UnionBank and its subsidiaries posted a net income of P4.7 billion for the first half of 2018, up 9% from the P4.3 billion earned in the same period last year.

Pilmico Foods Corporation and its subsidiaries reported a net income of P662 million for the first half of 2018, 8% lower than the P717 million recorded last year, due mostly to higher raw material costs.

Aboitiz Land, Inc. reported a net income of P283 million during the first half of 2018, 40% higher than the P202 million recorded last year. Revenues for the first half of 2018 totaled P2 billion, a 30% increase from the same period last year due primarily to the industrial business having recognized substantially more hectares sold during the first six months of 2018 compared to the same period last year.

Republic Cement and Building Materials, Inc.’s income contribution to AEV for the first half of 2018 decreased 91% YoY, from P494 million to P44 million. Although prices grew modestly with demand remaining from the previous quarter, this was offset by increased fuel and power costs during the period.

“For the rest of the year, we remain confident in ably executing our focused strategy. We look forward to more opportunities as well as the contributions of newly-acquired businesses as we stay true to our purpose of driving change for a better world by advancing business and communities,” Aboitiz added.

Original source can be found here.