The Aboitiz family-led conglomerate earned P4.1 billion from July to September, down from P8.9 billion a year earlier, while nine-month profit edged up just 2 percent to P17.8 billion.
The slowdown was particularly evident in its biggest earnings engine, AboitizPower, where third-quarter profit fell to P7.8 billion from P10.6 billion as lower coal plant availability weighed on operations.
Banking provides a cushion
UnionBank offered a counterweight, with nine-month earnings surging 53 percent to P9.9 billion as stronger lending income and banking fees combined with lower provisions for potential loan losses.
AboitizPower nevertheless remained the group's largest contributor, accounting for P14.1 billion in earnings attributable to AEV, supported by higher electricity prices, additional contracted capacity and new renewable energy assets.
Together, power and banking generated 87 percent of the conglomerate's positive earnings contributions, helping absorb weaker results from its other businesses.
Weakness spreads beyond power
Property earnings nearly vanished, falling to P7 million from P1.7 billion after the group failed to repeat substantial land sale gains recorded last year.
Food and beverage contributions slipped to P4.7 billion from P5.2 billion, as resilient beverage and animal feed operations faced pressure from import competition and weaker demand in meat production.
Infrastructure remained in the red, with losses attributable to AEV reaching P1.7 billion as improving airport traffic and telecommunications operations were overshadowed by continued losses at Republic Cement.
Cash provides flexibility
The uneven performance leaves AEV increasingly dependent on power and banking to defend profitability while its other businesses work through weaker demand and operating pressures.
The conglomerate ended September with P84.8 billion in cash and about P1 trillion in assets, providing financial flexibility as it navigates the softer earnings environment.
AEV also secured an A- investment-grade rating with a Stable outlook from Japan Credit Rating Agency in May, reflecting its diversified portfolio and financial position.
—Edited by Miguel R. Camus
