Aboitiz Equity Ventures Posts 55% Decline in H1 Net Income

Aboitiz Equity Ventures (AEV), the public holding company of the Aboitiz Group, posted a 55-percent decline in net income in the first half of 2020 from a year earlier.

In a disclosure to the Philippine Stock Exchange, AEV said it ended the first half with P4 billion in net income, 55 per cent lower than the P9 billion recorded during the same period last year.

The decline was attributed to the lower income contribution of its largest business unit, Aboitiz Power Corporation (AboitizPower).

AboitizPower’s net income contribution to AEV for the first half of the year declined by 57 per cent, from P6.7 billion to P2.9 billion, primarily due to reduced demand resulting from the enforcement of COVID-related community quarantines.

“The current COVID-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” said Sabin M. Aboitiz, Aboitiz Group President and Chief
Executive Officer.

The company recognized non-recurring losses of ₱20 million versus the ₱78 million in nonrecurring gains recorded in the previous year, representing foreign exchange losses from the revaluation of dollar-denominated assets.

Without these one-off losses, AEV’s core net income for the first half of 2020 was ₱4 billion, 54% lower year-on-year (YoY) (from ₱8.9 billion). AEV recorded consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₱23 billion during the first six months of 2020, a 13% decrease from the ₱26.5 billion recorded in the same period last year.

Power accounted for 49% of the total income contributions from AEV’s Strategic Business Units (SBUs), followed by banking and financial services (39%), food (14%), infrastructure (-1%), and land (-1%).

“The current COVID-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” said Sabin M. Aboitiz, Aboitiz Group President and Chief
Executive Officer.

“For the rest of the year, our goal is unchanged: to remain resilient and for our business units to be in the best possible position when we emerge from this crisis, in order to support the country’s economic recovery. As One Aboitiz, we will continue to be one with the nation in its fight against COVID-19,” Aboitiz added.

The Aboitiz chief looks forward to a better economy in the second half of the year as the country slowly opens up and adapts to the new normal. – BusinessNewsAsia.com