Aboitiz Equity Ventures Inc. (AEV) saw core net income rise 15 percent to P25.5 billion in 2024, up from P22.1 billion in 2023, driven by strong performances in power, banking, and food and beverage.
Core net income reflects earnings from regular operations, excluding one-time gains or losses.
However, net income dropped 23 percent to P18.1 billion, compared to P23.5 billion last year, due to P7.4 billion in non-recurring losses, primarily from a P7.5 billion impairment on Republic Cement & Building Materials Inc. (RCBM).
Fourth quarter performance (Q4)
- Core net income surged 39 percent to P6.7 billion in Q4 2024, up from P4.8 billion in Q4 2023.
- After factoring in non-recurring losses, AEV posted a P645-million net loss, a reversal from its P5.5-billion profit in Q4 2023.
Sabin Aboitiz
Aboitiz Equity Ventures president, CEO
What caused the impairment?
- RCBM faced weaker cement demand, leading to lower sales volume and selling prices.
- AEV’s share in RCBM’s net loss widened to P1.1 billion, from P789 million in 2023.
Business unit performance
- Power: Contributed 59 percent of AEV’s core income. AboitizPower’s net income rose 4 percent to P18 billion, driven by higher margins and energy sales.
- Banking: UnionBank’s net income jumped 32 percent to P6 billion thanks to loan growth and improved margins.
- Food & Beverage: Contributed 20 percent of AEV’s core income. Net income surged over 4x to P5.9 billion, driven by Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., and Coca-Cola Europacific Aboitiz Philippines (CCEAP). Gains came from stabilized commodity prices, optimized feed and flour formulations, and AEV’s 40 percent stake in CCEAP acquired in early 2024.
- Real Estate: Aboitiz Land’s net income declined 9 percent to P943 million, due to the absence of asset monetization gains from 2023.
- Infrastructure: Income fell 73 percent to P644 million, reflecting the impact of RCBM’s impairment and weak cement demand.
