Aboitiz Equity Ventures Inc. (AEV) said its net income fell 30 percent to P15.4 billion laset year from P22 billion, as most of its units reported a drop in earnings.
The company recognized non-recurring losses of P477 million for the period versus the P516 million in non-recurring gains recorded in 2019.
For the fourth quarter alone, its income fell 13 percent to P7.1 billion from P6.3 billion in the previous year.
The company did not provide its revenues.
Power accounted for 52 percent of the total income contributions of the company’s units, financial services accounted at 32 percent, food at 12 percent, while infrastructure and real estate each had 2 percent contributions.
“Through the many uncertainties, our business units stayed focused on ensuring we deliver uninterrupted vital services to our customers and communities. Careful consideration of our future growth led us to significantly reduce our capital expenditure budgets and prioritize essential projects supported by our strong balance sheet,” Sabin M. Aboitiz, the company’s president and CEO said.
“Early adoption of digital transformation allowed us to seamlessly transition work processes from the physical environment to virtual platforms. These initiatives form important elements in improving our ESG performance through our sustainability programs.”
Aboitiz Power Corp.’s net income contribution to AEV was at P9.7 billion, 27 percent lower compared to the P13.3 billion in the previous year. On a stand-alone basis, Aboitiz Power’s core net income for 2020 was P12.5 billion, 25 percent lower than in 2019.
Union Bank of the Philippines contributed P5.9 billion to the company last year, 18 percent lower than the P7.2 billion recorded in the previous year. On a stand-alone basis, Union Bank recorded net income of P11.6 billion in 2020, 18 percent lower than the P14 billion recorded in 2019, mainly due to higher provisions for loan losses for 2020.
The company’s non-listed food units income contribution amounted to P2.2 billion for 2020, 38 percent higher than the P1.6 billion recorded in 2019. The domestic companies reported net income amounting to P1.2 billion last year.
Companies in the food business include Pilmico Foods Corp., Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd., which includes Gold Coin Management Holdings Pte. Ltd.
The feeds business segment recorded net income of P999 million, more than double from the previous year due to higher volume and lower raw material costs.
The flour business segment recorded P716 million in net income, flat from the previous year on improved per unit gross profit and volume were offset by higher interest expenses and unrealized foreign exchange losses on money market placements.
The farms business segment, meanwhile, recorded a net loss of P552 million due to decreased margins resulting from higher production costs and lower selling prices caused by the industry-wide effect of the African Swine Fever. This was compounded by lower sales volume due to transport restrictions on pork and pigs imposed in several provinces in Luzon.
Income contributions from the international subsidiaries P978 million, a 29-percent increase from 2019, due to the increase in volume and decreased raw material costs, as well as the full year effect of the its full ownership in Gold Coin Management.
Aboitiz Land Inc., meanwhile, reported a 64-percent drop in consolidated net income to P338 million from the P943 million recorded the previous year, mainly on the absence of fair valuation gains on investment properties recognized in 2019, which were not present in 2020.
It contributed P3.5 billion in revenues for 2020, 15 percent lower than its revenue in 2019 due to constraints brought about by the slowdown of construction activities and restrictions in operations resulting from the Covid-related community quarantines.
Of its revenue for 2020, the residential business unit contributed P1 billion, the commercial business unit contributed P213 million, while the industrial business unit and other subsidiaries contributed the remaining P2.2 billion.
For the infrastructure group, Republic Cement and Building Materials Inc. reported a net income of P590 million, down by 4 percent from P612 million in 2019 due to the contraction in the demand for cement as construction activities significantly slowed down.
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