The listed holding company of the Aboitiz Group reported a 3% profit growth in 2018 to P22.2 billion, with the power group propping up earnings amid the weaker performance of other business units.
In a disclosure to the Philippine Stock Exchange on Friday, March 8, 2019, Aboitiz Equity Ventures, Inc. said its non-recurring losses for the full-year 2018 reached P891 million, consisting of net unrealized foreign exchange losses and asset impairment costs.
“Without these one-off losses, core net income for 2018 totaled P23.1 billion, 3% lower than the P23.9 billion reported in 2017,” the company said.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA), which measures core operating performance, increased by 6.5% to P60.7 billion.
The power strategic business unit continued to contribute the bulk of the company’s profits, accounting for nearly three-fourths or 73% of total income contributions from all business units.
Net income contribution from Aboitiz Power Corporation (AboitizPower) increased by 6% year-on-year to P16.7 billion from P15.7 in 2017.
On a stand-alone basis, AboitizPower’s core net income for 2018 went up 2% to P23.8 billion. Taking into account 2018’s non-recurring losses of P2.1 billion, net income was 6% higher at P21.7 billion.
Other business units reported lesser income contributions:
P3.6 billion from the Union Bank of the Philippines, a 13% decline from P4.1 billion in 2017;
P1.6 billion, or an 8% decrease, from food subsidiaries Pilmico Foods Corporation, Pilmico International Pte. Ltd., Gold Coin Management Holdings Limited, Pilmico Animal Nutrition - Joint Stock Company, and Vietnam Feeds;
P645 million from real estate development arm AboitizLand, Inc. (AboitizLand) and its subsidiaries, 13% lower than the P744 million in 2017, due to the “absence of fair valuation gains on investment properties during 2018”; and
P213 million from the Republic Cement and Building Materials, Inc. under the infrastructure group, 68% lower than the P671 million in 2017 due mainly to the higher fuel and power costs.
As of end-2018, AEV said its consolidated assets totaled P554.6 billion, a 13% increase from end-2017’s level of P492.2 billion, while consolidated liabilities totaled P337.3 billion, a 13% increase from the year-end 2017 level of P299.7 billion.
Equity attributable to equity holders of the parent increased by 13% to P174.7 billion. AEV’s current ratio as of December 31, 2018 stood at 1.8x while the net debt-to-equity ratio was 1.0x. (Ventures Cebu from PR)