• AEV 9-mth net income falls on weak power, bank units

    0

    ABOITIZ Equity Ventures Inc. (AEV) reported a 17-percent decline in net income in the first nine months of 2015 due to the weak performance of its power, banking and property units.

    Its consolidated net income dropped to P14.3 billion from P11.9 billion a year earlier.

    “Despite the slight slide in profits, our strategic growth plans – whether at home or abroad – remain intact. Our recent foray into infrastructure through Lafarge Republic Inc. (LRI), for instance, represents an excellent opportunity to be involved in nation building and participate in the robust growth expectations in that sector,” said AEV President and Chief Executive Officer Erramon I. Aboitiz said.

    Of its four main business units, only the food business or Pilmico Foods Corp. improved with minor contribution as it accounts for only 11 percent of the total revenue.

    The bulk of revenues is in power generation (75 percent), followed by banking (12 percent) and real estate (2 percent).

    AEV also incurred a one-time loss of P623.2 million – from a one-time gain of P379.6 million last year – due to the revaluation of Aboitiz Power Corp.’s (AboitizPower) consolidated dollar-denominated liabilities and placements.

    AboitizPower saw an 8-percent decline in its consolidated net income to P13.2 billion in January to September from P12.2 billion. This was mostly from the revaluation of dollar-denominated liabilities. Without the one-off loss, AboitizPower’s core net income is only be down by 3 percent to P13 billion.

    Banking arm Union Bank of the Philippines also observed its net income was almost halved to P3.67 billion from P6 billion. This is attributed to industry-wide drop in trading gains.

    For AboitizLand Inc., net income contribution also declined by 56 percent to P249 million from P565.4 million after it incurred lower sales in LiMA Land industrial lots and higher manpower cost due to an organizational expansion that resulted in a 20-percent decrease in consolidated revenue at P1.7 billion.

    The only unit that gained, Pilmico Foods, saw a 46-percent growth in net income at P1.4 billion from P942.2 million due to its feeds business in Vietnam and the strong performance of the feeds business in the Philippines.

    Recently, the group had two major acquisitions – remittance arm PETNET and a construction business to be renamed Republic Cement & Building Materials Inc. – which started contributing revenue in June and mid-September, respectively.

    “We believe progressive infrastructure is what will propel our country’s economic growth and what will ultimately lead to a better life for our fellow Filipinos. Overseas, we remain on the lookout for growth opportunities that fit into our investment parameters, ensuring that will deliver value to our stakeholders,” Aboitiz said.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.