Aboitiz Equity Ventures Inc. (AEV), the holding company of the Aboitiz Group and one of the oldest conglomerates in the country, posted a 29 percent fall in consolidated net profit due to weaker power and banking businesses.
A further decline was averted by a 181 percent jump in the profit contributed by its property arm, brought about mainly by the 100 percent consolidation of AEV’s recently acquired Lima Land, Inc.
The whole conglomerate reported consolidated net profit of P4.9 billion for the first quarter, down 29 percent from a year ago. Core net income, however, rose 1.3 percent to P5.5 billion, it said.
Of the group’s strategic business units (SBUs), power accounted for 73 percent of the first-quarter earnings while the income contribution of the banking, food and property SBUs contributed 16.6 percent, 7.7 percent, and 2.8 percent, respectively.
The listed group’s power generation arm, Aboitiz Power Corp. (AboitizPower), recorded consolidated net income of P4.2 billion for the quarter, down 9 percent from the previous year.
In a separate filing with the stock exchange, Aboitiz Power said it booked an unrealized non-recurring loss of P211.1 million from the revaluation of consolidated dollar loans and placements.
Aboitiz Group’s banking subsidiary Union Bank of the Philippines (UnionBank) also turned in weaker earnings for the first quarter. Union Bank’s net profit plunged 59 percent to P730.6 million in the first three months of this year from P1.8 billion in the same period last year.
On the other hand, the group’s non-listed food subsidiary, Pilmico Foods Corp. (Pilmico), reported a 4 percent year-on-year increase in first quarter 2014 income contribution to the group, from P325.2 million to P338.6 million.
The net income contribution of Aboitiz Land rose 181 percent year-on-year to P121.1 million in the first quarter from P43.1 million previously.
To support its growth initiatives for 2014, AboitizLand has allotted P5.4 billion for capital expenditures for land acquisition and project development, of which it has already spent P1.4 billion in the first quarter. AboitizLand looks to further growth “as it takes on more exciting projects,” AEV said.