Listed holding company Aboitiz Equity Ventures (AEV) said its consolidated net income for the first half of the year dropped 18 percent from a year ago due mainly to revaluation adjustments in the dollar-denominated liabilities of its power business.
The company posted a consolidated net income of P7.8 billion, down 18 percent from P9.5 billion recorded in the same period last year.
Its power business accounted for 75.9 percent of the consolidated income, followed by the banking, food, and land strategic business units (SBUs), with income contributions of 10.6 percent, 10.9 percent, and 2.6 percent, respectively.
AEV said it incurred a non-recurring loss of P109.7 million in the first half, reversing the one-time gain of P785.2 million recorded last year, arising from the revaluation of consolidated dollar-denominated liabilities and placements of its power unit.
Core net income amounted to P7.9 billion, 9 percent lower than the comparative period last year.
Despite the drop in profits for the first half, AEC president and chief executive officer Erramon Aboitiz expressed optimism in pursuing growth plans.
“We will continue to pursue our strategic growth plans as we strengthen our businesses in line with the country’s economic growth and requirements. Expansion opportunities abound, not only on the domestic front, but beyond our borders as well,” Aboitiz said.
The income contribution of AEV’s banking arm, Union Bank of the Philippines (UnionBank), dropped 42 percent in the first half to P866.4 million from P1.5 billion in the same period last year due mainly to trading losses
On the other hand, its non-listed food subsidiary, Pilmico Foods Corp. (Pilmico), recorded stellar growth of 37 percent in income contribution in the period to P885.2 million from P647.8 million a year ago.
Meanwhile, property arm Aboitiz Land Inc. (AboitizLand), recorded real estate revenues of P1.2 billion, 48 percent higher than the P823.1 million posted in the same period last year.
AEV is the publicly listed holding and investment company of the Aboitiz Group with major investments in power, banking, food, land, and infrastructure.