Metro Manila (CNN Philippines, April 28) — Aboitiz Equity Ventures reported a huge jump in earnings for the first three months of 2021, as it observed strong growth across its businesses.
The listed holdings firm disclosed to the local bourse Wednesday a consolidated net income of ₱7.6 billion for the first quarter of the year, a significant increase from the ₱2 billion it reported during the same period a year ago. It likewise recognized non-recurring losses of ₱219 million during the quarter, down from the ₱262 million from January to March 2020.
“The first quarter of 2021 is solid proof that the Aboitiz Group is already making headway in its recovery and growth plans for the year,” said president and chief executive officer Sabin Aboitiz.
Aboitiz Power — which contributed 58% of the conglomerate’s total earnings for the period — hauled in ₱4.8 billion, which is thrice its ₱1.6 billion net income in the first quarter of 2020. AEV attributed this to the higher availability of its thermal facilities, water inflows and spot sales.
These improved performances offset the lower power demand resulting from lingering quarantine restrictions, added the group.
Union Bank of the Philippines contributed ₱2.4 billion to AEV’s total earnings for the period. This is also up from the ₱1.3 billion logged a year ago. The bank’s net income with its subsidiaries, meanwhile, rose to ₱4.7 billion from the ₱2.6 billion recorded a year ago.
“The higher net revenues provided cushion for the bank to book additional loan loss provisions of ₱2.3 billion even as the NPL (non-performing loans) ratio has declined to 4.7% from 5.1% in December 2020,” said the holdings firm. “These also allowed UnionBank to absorb the one-time impact on deferred tax assets due to the CREATE law.”
Food subsidiaries Pilmico Foods, Pilmico Animal Nutrition, and Pilmico International remitted ₱630 million in earnings to their parent company for the first quarter of 2021. AEV noted this is also an increase from the ₱174 million they posted last year.
Meanwhile, real estate arm AboitizLand and its subsidiaries earned ₱101 million during the period, a reversal of the ₱110 million in losses incurred in the first three months of 2020.
AEV’s infrastructure group Republic Cement & Building Materials likewise raked in ₱334 million, a stellar improvement from the ₱61 million recorded during the same period last year.
“Our early initiatives on innovation and digitalization propelled the organization’s business continuity at the onset of the pandemic and we are prepared and committed to see our businesses through with the same growth pathway and trajectory,” said Aboitiz.
AEV shares finished at ₱35.35 apiece on Wednesday, up 3.97% from yesterday’s close.
The Aboitiz Group earlier announced it set aside ₱48 billion for its capital expenditures this year, nearly 70% higher than its budget for investments in 2020.
