MANILA -- Conglomerate Aboitiz Equity Ventures (AEV) on Wednesday said its first-half profit declined by 11 percent, dragged mainly by lower-income share of power business.
In a disclosure to the Philippine Stock Exchange, the AEV reported its net income reached PHP9 billion in January to June from PHP10.1 billion recorded last year.
Its core net income stood at PHP8.9 billion, down 16 percent from PHP10.6 billion last year, without one-off gains.
“While challenges to our bottom line continue to persist, we have seen recovery across our entire portfolio compared to the same period last year and compared to the previous quarter,” AEV president and chief executive officer Erramon Aboitiz said.
“We still feel we are well-positioned to reap the benefits of our country’s ‘demographic dividend’ and to take advantage of opportunities to evolve and expand beyond our borders, as we deepen our role in building a better future for communities,” he said.
Aboitiz Power Corporation’s net income contribution to AEV for the first half of 2019 decreased by 5 percent from PHP7 billion to PHP6.7 billion due largely to higher volume and cost of purchased power.
Income contributions from the generation and retail electricity supply businesses accounted for 82 percent of total income contributions from AboitizPower’s business segments, which totaled PHP8.1 billion during the first six months of 2019, 5 percent lower year-on-year.
AboitizPower’s distribution business recorded an income share of PHP1.8 billion during the first semester, a 12-percent decrease.
Union Bank of the Philippines’ income share to the AEV rose by 3 percent to PHP2.4 billion from PHP2.3 billion, as the bank sustained the growth of earning assets despite lower margins and strategic investment in its digital transformation.
That of its non-listed food subsidiaries, Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and AEV International Pte. Ltd., declined by 17 percent to PHP552 million from PHP662 million.
Republic Cement & Building Materials, Inc.’s income share increased a whopping 473 percent from PHP44 million to PHP249 million due to improved control on production costs, together with higher market prices and private sector demand.
Aboitiz Land Inc. reported a consolidated net income of PHP60 million for the first half this year, 79 percent lower than the PHP283 million recorded last year. (PNA)
