Aboitiz Equity Ventures Posts P25.5 Billion Core Net Income in 2024

​Aboitiz Equity Ventures Inc. (AEV) reported consolidated core net income of P25.5 billion (bn), which was 15% higher than the Company’s core net income of P22.1 bn in 2023. However, after factoring in P7.4 bn of non-recurring items, mostly related to an asset impairment, the Company’s net income for 2024 was P18.1 bn, compared to P23.5 bn in 2023.

Consolidated core net income for the fourth quarter of 2024 was P6.7 bn, up 39% year-on-year from P4.8 bn. After factoring in the non-recurring net losses of P7.4 bn, AEV incurred a consolidated net loss of P645 million (mn) for the fourth quarter of 2024, a reversal of the P5.5 bn net income reported for the fourth quarter of 2023.
 
On a core net income basis, Power accounted for 59% of the consolidated net income contributions from AEV’s Strategic Business Units (SBU) in 2024, while Financial Services and Food and Beverage SBUs each accounted for 20%. Net income contributions from Real Estate and Infrastructure SBUs were at 3% and -2%, respectively.

Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV in 2024 amounted to P18.0 billion, 4% higher than the P17.3 billion recorded in 2023.

On a stand-alone basis, AboitizPower’s beneficial Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) for the full year 2024 was P73.3 bn, a 13% growth year-on-year. This was largely driven by higher generation portfolio margins and higher energy sales from the Distribution Utility business. The additional capacities from the 159 megawatt-peak (“MWp”) Laoag and 94 MWp Cayanga Solar Plants and the growth in Retail volume further increased AboitizPower’s beneficial EBITDA for the period. The same drivers resulted in beneficial EBITDA growth for the fourth quarter of 2024 at P17.2 billion, 20% higher than the P14.4 billion beneficial EBITDA in the same period in 2023.

AboitizPower’s Generation and Retail Supply business beneficial EBITDA in 2024 was P66.7 bn, 11% higher than the P59.9 bn in 2023. This was driven by higher portfolio margins, the full-year contribution of AboitizPower’s Cayanga solar plant, and the energization of the Laoag solar plants. Energy sold reached 36,004 gigawatt-hours (GWh), which was flat compared to 2023.

For the full year of 2024, the beneficial EBITDA of AboitizPower’s Distribution Utility business was 13% higher than in 2023, driven by higher energy sales from higher demand due to the effect of the El Niño phenomenon. Energy sales from Residential and Commercial and Industrial customers increased by 13% and 5% year-on-year, respectively.

Net income contribution from Union Bank of the Philippines (“UnionBank”, or “the Bank”) to AEV in 2024 amounted to P6.0 bn, 32% higher than the P4.5 bn recorded in 2023.

On a stand-alone basis, UnionBank recorded a net income of P12.0 bn for the full year 2024, 31% higher than the P9.2 bn recorded in 2023. Core operations remain strong as revenues increased by 12% year-on-year to P79.5 bn. Net interest income in 2024 grew by 12% year-on-year to P58.0 bn due to higher net interest margin of 6.0%, which was attributable to the 8.0% year-on-year growth in consumer loans. As of December 31,2024, consumer loans accounted for 61% of UnionBank’s total loan portfolio, up from 58% as of December 31, 2023.

Despite the Bank’s ongoing investments in customer engagement programs, full year 2024 operating expenses improved by 1.4% to P44.3 bn compared to the same period in 2023. The Bank’s cost-to-income ratio improved to 55.6% in 2024, compared to 63.4% in 2023.

Total assets of the Bank as of December 31, 2024 was P1.1 trillion (tn). Total loans of the Bank was P522.7 bn, while low-cost current account/savings account (CASA) deposits were at P446.9 bn.

Aboitiz Land, Inc. (“Aboitiz Land”) and its subsidiaries reported a consolidated net income of P943 mn in 2024, down 9% from the P1.0 bn recorded in 2023. The decrease was primarily due to the absence of asset monetization gains in 2024, which were realized 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 Europacific Aboitiz Philippines Inc. (CCEAP; formerly Coca-Cola Beverages Philippines, Inc.), was P5.9 bn in 2024. This was more than four times the P1.3 bn recorded in 2023, primarily driven by (i) Aboitiz Foods, which continued to benefit from stabilizing commodity prices, optimized formulations in both feeds and flour, and strategic pricing adjustments, and (ii) the fresh contributions from AEV’s 40% stake in CCEAP, which the Company acquired on February 23, 2024.

Net income contribution from Aboitiz InfraCapital, Inc. (“AIC”) to AEV in 2024 amounted to P644 mn, 73% lower than the P2.4 bn in 2023, which included P1.2 bn of non-recurring gain.

AEV’s share in Republic Cement & Building Materials, Inc.’s (“Republic Cement”) loss in 2024 increased to P1.1 bn, from P789 mn share of losses in 2023, due to the continued year-on-year decline in sales volume and selling prices due to weak market demand for cement. In 2024, the Company also recorded impairment losses on RCBM of P7.5 bn in 2024.
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As of December 31, 2024, AEV’s consolidated assets was P893.0 bn, 7% higher from year end-2023 level of P833.9 bn. Cash and cash equivalents was P80.8 bn, 28% lower from year end-2023 level of P112.3 bn. Consolidated liabilities was P496.6 bn, 8% higher from the year-end 2023 level of P458.5 bn, while equity attributable to equity holders of the parent increased by 4% at P283.3 bn from year end-2023 level of P272.0 bn. AEV’s current ratio as of December 31, 2024 stood at 1.6x while its net debt-to-equity ratio was 0.8x.