Aboitiz Equity Ventures Posts P3.2 Billion Consolidated Net Income in 1Q 2025

​Aboitiz Equity Ventures Inc. (AEV) recorded consolidated net income of P3.2 billion (bn) for the first quarter of 2025, a 35% decline from the P4.9 bn reported in the first quarter of 2024. Power accounted for 62% of the total net income contributions from AEV’s Strategic Business Units (SBU) for the first quarter of 2025, while Food and Beverage accounted for 35%. Net income contributions from the Financial Services, Real Estate, and Infrastructure SBUs were at 17%, -1%, and -13%, respectively.

​Strategic Business Units

Power

Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first quarter of 2025 amounted to P2.5 billion, 39% lower than the P4.2 billion recorded in the same period in 2024.

On a stand-alone basis, AboitizPower’s beneficial EBITDA for the first quarter of 2025 benefitted from fresh contributions from Chromite Gas Holdings, Inc., and its Laoag (159 megawatt-peak (MWp)), Armenia (45MWp) and Calatrava (173MWp) solar plants. However, lower spot market prices and the upfront scheduled outages of the Pagbilao, Therma Visayas Inc. (TVI) and GNPower Mariveles Energy Center (GMEC) plants tempered AboitizPower’s beneficial EBITDA to P15.1 bn, which was 8% lower than the P16.4 bn recorded in the same period in 2024. Excluding the impact of its scheduled outages, beneficial EBITDA would have been P15.9 bn.

The beneficial EBITDA of AboitizPower’s generation and retail supply business reached P13.1 bn in the first quarter of 2025, 10% lower than the P14.6 bn recorded in the same period in 2024. Energy sold totalled 8,650 gigawatt-hours (GWh) for the first quarter of 2025, compared to 8,812 GWh in the same period in 2024. Excluding the impact of scheduled outages, the generation and retail supply business EBITDA would have reached P14.0 bn.

During the first quarter of 2025, AboitizPower’s distribution business recorded beneficial EBITDA of P2.0 bn, 4% lower than the P2.1 bn recorded in the same period in 2024. The decrease was primarily driven by a non-recurring refund of regulatory reset fees.

Banking & Financial Services

Net income contribution from Union Bank of the Philippines (UnionBank, or “the Bank”) amounted to P702.3 mn for the first quarter of 2025. This was 28% lower than the P978.3 mn recorded in the same period in 2024.

On a stand-alone basis, UnionBank recorded revenues of P19.4 bn, 8% higher year-on-year. Net interest income for the first quarter of 2025 rose by 14% year-on-year to P15.4 bn. This was driven by the 69bps expansion in the net interest margin to 6.3%, as a result of the continued growth in consumer loans and lower funding costs. As of March 31, 2025, consumer loans accounted for 62% of UnionBank’s total loan portfolio, up from 59% in the same period in 2024. The growth in the Bank’s revenues outpaced the 4% year-on-year increase in its operating expenses to P11.5 bn, such that cost-to-income ratio improved to 59.3% in the first quarter of 2025, compared to 61.8% in the same period in 2024.

Nevertheless, the Bank’s net income declined by 29% year-on-year to P1.4 bn for the first quarter of 2025, primarily due to a tax-related write-off associated with UnionDigital's 2024 performance and front-loaded, non-recurring costs.

As of March 31, 2025, the total assets and total loans of the Bank amounted to P1.1 trillion (tn) and P510.4 bn, respectively, while low-cost current account/savings account (CASA) deposits reached P454.0 bn.

Real Estate

Aboitiz Land, Inc. (Aboitiz Land) and its subsidiaries reported a consolidated net loss of P58.3 mn for the first quarter of 2025, a reversal from the P280.3 mn net income recorded in the same period of 2024. This was primarily driven by lower sales and higher forfeitures.

Food and Beverage

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, Aboitiz Foods), and Coca-Cola Europacific Aboitiz Philippines Inc. (CCEAP; formerly Coca-Cola Beverages Philippines, Inc.), was P1.4 bn in the first quarter of 2025. This was 54% higher than the P935.1 mn recorded in the same period of 2024, primarily driven by (i) profitability gains across all divisions of Aboitiz Foods, led by strong margin and volume growth in both the Flour and Agribusiness segments, and (ii) full contributions from CCEAP, which financially closed only on February 23, 2024.

Infrastructure

Aboitiz InfraCapital, Inc.’s income contribution to AEV for the first quarter of 2025 amounted to a loss of P207.0 mn, a reversal from the P71.8 mn profit recorded in the same period in 2024. This was mainly the result of higher interest expense from its increased debt availments for its expansion.

AEV’s share in Republic Cement & Building Materials, Inc.’s (Republic Cement) loss for the first quarter of 2025 amounted to P338.1 mn, higher than the P228.1 mn loss recorded in the same period of 2024 due to the continued decline in sales volume and selling prices driven by weak market demand for cement.

Financial Condition

As of March 31, 2025, AEV’s consolidated assets amounted to P926.9 bn, 4% higher from year end-2024 level of P893.7 bn. Cash and cash equivalents was P70.1 bn, 14% lower from year end-2024 level of P81.8 bn. Consolidated liabilities was P542.1 bn, 9% higher from the year-end 2024 level of P497.3 bn, while equity attributable to equity holders of the parent decreased by 2% at P277.3 bn from year end-2024 level of P283.3 bn. As of March 31, 2025, AEV’s current ratio and net debt-to-equity ratio both stood at 1.0x.