LISTED CONGLOMERATE Aboitiz Equity Ventures, Inc. (AEV) posted a 23% decline in net income for 2024 to P18.1 billion from P23.5 billion in 2023 due to an asset impairment and a weak fourth quarter.
The company’s net income fell after accounting for P7.4 billion in non-recurring items, mostly related to an asset impairment, AEV said in a regulatory filing on Monday.
Despite this, core net income rose by 15% to P25.5 billion in 2024 from P22.1 billion in 2023.
For the fourth quarter of 2024, AEV recorded a net loss of P645 million, reversing the P5.5-billion net income posted in the same period in 2023.
Core net income for the October-to-December period rose by 39% to P6.7 billion from P4.8 billion in 2023.
AEV’s power segment accounted for 59% of consolidated net income contributions on a core net income basis for 2024, followed by financial services and food and beverage businesses at 20% each. The real estate and infrastructure units contributed 3% and -2%, respectively.
In the power business, Aboitiz Power Corp. recorded a 4% increase in net income contribution to P18 billion in 2024.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) on a standalone basis grew by 13% to P73.3 billion, driven by higher generation portfolio margins and increased energy sales from the distribution utility business.
In the banking and financial services segment, Union Bank of the Philippines (UnionBank) saw a 32% rise in net income contribution to P6 billion in 2024 from P4.5 billion in 2023.
On a standalone basis, UnionBank’s net income increased by 31% to P12 billion in 2024 from P9.2 billion in 2023.
Net interest income grew by 12% to P58 billion due to a higher net interest margin.
The real estate segment, led by Aboitiz Land, Inc., posted a 9% decline in consolidated net income to P943 million in 2024 from P1 billion in 2023 due to the absence of asset monetization gains.
Net income contribution from the food and beverage segment, which includes Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., and Coca-Cola Europacific Aboitiz Philippines Inc. (CCEAP), grew more than fourfold to P5.9 billion in 2024 from P1.3 billion in 2023.
The growth was driven by stabilizing commodity prices, optimized feeds and flour formulations, pricing adjustments, and new contributions from AEV’s 40% stake in CCEAP, acquired in February 2023.
In the infrastructure segment, Aboitiz InfraCapital, Inc. reported a 73% decline in net income contribution to P644 million in 2024 from P2.4 billion in 2023.
AEV said its share in Republic Cement & Building Materials, Inc.’s net loss widened to P1.1 billion in 2024 from P789 million in 2023, reflecting continued annual declines in sales volume and selling prices due to weak cement demand.
The conglomerate also booked P7.5 billion in impairment losses on Republic Cement last year.
As of end-2024, AEV’s consolidated assets increased by 7% to P893 billion, while consolidated liabilities grew by 8% to P496.6 billion.
AEV shares declined by 0.90% or 30 centavos to P33.20 apiece on Monday. — Revin Mikhael D. Ochave
