ABOITIZ Equity Ventures Inc. (AEV) said its first quarter net income rose 24 percent from a year earlier, mainly driven by the strong performance of its power, banking and financial, and infrastructure businesses.
In a report, the holding and investment company of the Aboitiz Group said its consolidated net income from January to March increased to P5 billion from P4.1 billion in the same period last year.
AEV said its power business accounted for 70 percent of earnings, followed by banking and financial services which contributed 15 percent, food with 7 percent, infrastructure also 7 percent, and land one percent.
The company said core net income jumped 19 percent to P4.9 billion from P4 billion in the same quarter last year.
“The contribution from our cement business is a clear manifestation of the momentum in our thrust to create a fifth leg for AEV. We expect strong growth in cement and the full-year recognition of income from Republic Cement to positively impact AEV’s earnings this year,” Erramon Aboitiz, AEV president and chief executive officer, said.
“We are also very pleased with the growth in contributions coming from our power and banking and financial services units,” Aboitiz added.
Aboitiz Power Corporation (AboitizPower) contributed P3.9 billion to the Group’s income, 15 percent higher compared with the P3.3 billion posted during the same period last year, while income performance recorded a 15 percent increase from P4.3 billion to P5.0 billion last year.
Union Bank of the Philippines (UnionBank) and its subsidiaries generated P837 million in earnings during the first quarter of the year, more than double the contribution for the same period a year ago. The surge in net income is mainly attributed to the net interest income and fees, which accounted for 90 percent of the business as it improved by a third to P4.5 billion.
AEV’s non-listed food subsidiaries (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Limited) recorded a 6 percent decline in first quarter income contribution amounting to P389 million from last year’s P416 million.
AEV’s land subsidiary, Aboitiz Land Inc.’s (AboitizLand) total earnings and income contribution to AEV for the first quarter shrank 38 percent, from P80 million last year to P50 million in the first quarter this year.
Revenues declined by 13 percent to P500 million from P576 million in 2015, because of revenue recognition under the percentage-of-completion method, which recorded a slower pace of construction in the first quarter of 2016 compared to the same period last year, and higher operating expenses.
AEV’s infrastructure company, Republic Cement and Building Materials, Inc., which started contributing mid-September last year, generated P391 million for the period in review because of robust construction activities in the country.