MANILA -- Conglomerate Aboitiz Equity Ventures, Inc. (AEV) has reported a slightly lower profit in the first nine months of 2017, largely due to foreign exchange (forex) losses.
AEV told the local bourse on Thursday its net income reached PhP15.9 billion, 7 percent lower than last year’s PhP17.1 billion.
It recognized non-recurring losses of PhP1.2 billion coming from forex losses from the revaluation of dollar-denominated loans and pre-termination costs on refinancing.
Without the one-offs, AEV’s core net income remained flat at PhP17.1 billion.
“We remain optimistic on the long-term fundamentals of our businesses, and we look forward to continuing to advance business and communities in the execution of our growth strategy,” said Erramon I. Aboitiz, AEV President and Chief Executive Officer.
AboitizPower’s earnings contribution to AEV reached PhP12.1 billion, as its net income improved by 4 percent to PhP15.7 billion, boosted by its power generation business.
Union Bank of the Philippines, together with its subsidiaries, recorded a profit of PhP6.4 billion, down 22 percent from PhP8.1 billion last year.
The income share of PETNET, Inc., the group’s other financial services company, surged 315 percent to PhP20 million.
Profit of AEV’s non-listed food subsidiaries (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte Ltd.) declined by 14 percent to PhP1.2 billion from last year’s PhP1.4 billion.
AEV said Feeds Philippines and Flour reported a drop in net income contributions largely due to lower margins and higher operating costs.
Its Feeds Vietnam and Farms saw their incomes increase on expansion in new markets, better margins, and improved selling prices of live hogs.
From the infrastructure group, Republic Cement & Building Materials, Inc.’s income share to AEV declined by 80 percent to PhP249 million.
AEV said a slowdown in cement demand weighed on the firm's first nine months of operation, quite different from last year, when there was strong demand due to the election season.
Net income of its land subsidiary, Aboitiz Land, Inc., jumped 128 percent to PhP340 million due to higher revenues booked by the industrial business unit (BU), and higher sales and notable construction progress by the residential BU. (PNA)
