Aboitiz Equity Ventures, Inc. Reported P18.8 Billion in Consolidated Net Income for 9M24, Up 4%

​Aboitiz Equity Ventures Inc. (AEV) recorded consolidated net income of P18.8 billion for the first nine months of 2024, a 4% increase from the P18.0 billion reported for the first nine months of 2023. Excluding non-recurring foreign exchange losses of P20 million, the Company’s core net income for the first nine months of 2024 was P18.8 billion, which was 9% higher than the Company’s core net income of P17.3 billion during the corresponding period in 2023.

The Company recorded consolidated net income of P7.3 billion for the third quarter of 2024, a 4% decrease from the P7.6 billion reported for the third quarter of 2023. Excluding non-recurring net foreign exchange losses of P104 million, the Company’s core net income for the third quarter of 2024 was P7.4 billion, which was 20% higher than the Company’s core net income of P6.2 billion during the corresponding period in 2023.
 
Power accounted for 64% of the total net income contributions from AEV’s Strategic Business Units (SBU) for the first nine months of 2024, while Financial Services and Food and Beverage SBUs each accounted for 19%. Net income contributions from Real Estate and Infrastructure SBUs were at 2% and -4%, respectively.
 
“Our third-quarter results reflect not only the strength of our diversified businesses but also the positive momentum we are seeing in the broader economy. With inflation moderating and recent rate cuts providing relief, we are optimistic about the opportunities ahead. These improving macroeconomic conditions will allow us to continue to create long-term value for our stakeholders and to contribute to the economic growth of our country,” said Aboitiz Group President and CEO Sabin M. Aboitiz.
 
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first nine months of 2024 amounted to P14.5 billion, 4% higher than the P13.9 billion recorded during the same period in 2023.
 
On a stand-alone basis, AboitizPower’s beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 12% year-on-year to P56.1 billion for the first nine months of 2024. This was largely driven by higher generation portfolio margins, and additional capacities from the 159 megawatt (MW) Laoag and 94 MW Cayanga solar plants. In addition, the growth in retail volume and higher energy sales from the Distribution Utility business further increased AboitizPower’s beneficial EBITDA for the period.
 
AboitizPower’s Generation and Retail Supply business beneficial EBITDA for the first nine months of 2024 was P50.9 billion, 11% higher than the P46.0 billion during the same period in 2023. This was driven by higher portfolio margins and energization of AboitizPower’s Cayanga and Laoag solar plants. Energy sold reached 26,910 gigawatt-hours (GWh), or 2% higher compared to the same period in 2023.
 
For the first nine months of 2024, AboitizPower’s Distribution business beneficial EBITDA was P6.6 billion, higher by 11% from the P6.0 billion during the same period last year, driven by higher energy sales. Energy sales increased by 8% to 4,939 GWh for the first nine months of 2024, compared to 4,569 GWh during the same period in 2023 due to the higher demand driven by the effect of the El Niño phenomenon. Energy sales from Residential, Commercial and Industrial customers increased by 14% and 5% year-on-year, respectively.
 
Net income contribution from Union Bank of the Philippines (UnionBank) amounted to P4.2 billion for the first nine months of 2024. This was 4% higher than the P4.0 billion recorded in the same period in 2023.
 
On a stand-alone basis, UnionBank recorded a net income of P8.6 billion for the first nine months of 2024. This was 6% higher than the P8.1 billion recorded during the same period in 2023. Core operations remain healthy as the Bank’s revenues for the first nine months of 2024 increased by 9% year-on-year to P57.7 billion. Net interest income for the first nine months of 2024 also rose by 14% year-on-year to P42.6 billion as a result of higher net interest margin of 5.9%, which was attributable to the 5.9% year-on-year growth in consumer loans. As of September 30, 2024, consumer loans accounted for 60% of UnionBank’s total loan portfolio, which declined by 1% compared to its total loan portfolio as of September 30, 2023.
 
The 2% year-on-year decline in the Bank’s operating expenses to P33.0 billion for the first nine months of 2024 was primarily driven by the reduction in IT cost, as a result of the successful migration of the acquired Citi Consumer business into the UnionBank system. The Bank’s cost-to-income ratio has improved to 57.2% for the first nine months of 2024, compared to 63.4% during the same period in 202
 
Total assets of the Bank as of September 30, 2024 was P1.1 trillion. Total loans of the Bank was P523.2 billion, while low-cost CASA deposits were at P419.4 billion.
 
Aboitiz Land, Inc. (AboitizLand) and its Subsidiaries reported a consolidated net income of P521 million for the first nine months of 2024, 27% lower than the P716 million recorded during the same period in 2023. This was primarily due to the higher operational expenses and overhead costs and asset monetization in 2023.
 
Net income contribution from the Food and Beverage segment, which includes Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd. (which houses Gold Coin Management Holdings Pte. Ltd.) (collectively, the “Aboitiz Foods”), and Coca-Cola Beverages Philippines, Inc. (CCBPI), was P4.2 billion for the first nine months of 2024. This is more than 8x higher than the P499 million recorded during the same period in 2023. This was primarily driven by the Aboitiz Foods’ Flour and Agribusiness divisions, which continued to benefit from stabilizing commodity prices, optimized formulations in both feeds and flour, strategic selling prices adjustments, and fresh contributions from CCBPI, where AEV acquired a 40% stake on February 23, 2024.
 
Aboitiz InfraCapital, Inc. recorded a net loss of P148 million income contribution to AEV for the first nine months of 2024, a reversal from the P1.4 billion profit recorded in the same period in 2023, which included P1.2 billion of non-recurring gain.
 
AEV’s share in Republic Cement & Building Materials, Inc.’s (Republic Cement) loss for the first nine months of 2024 amounted to P726 million. This was higher than its share of losses during the same period in 2023, which amounted to P592 million, as sales volume and selling prices continued to decline year-on-year due to weak market demand for cement.
 
As of September 30, 2024, AEV’s consolidated assets was P844.9 billion, 1% higher from year end-2023 level of P833.9 billion. Cash and cash equivalents was P79.0 billion, 30% lower from year end-2023 level of P112.3 billion. Consolidated liabilities was P453.0 billion, 1% lower from the year-end 2023 level of P458.5 billion, while equity attributable to equity holders of the parent increased by 4% at P284.0 billion from year end-2023 level of P272.0 billion. AEV’s current ratio as of September 30, 2024 stood at 1.9x while its net debt-to-equity ratio was 0.8x.