Aboitiz Equity Ventures Inc. (AEV), the listed holding firm led by bilyonaryo Sabin Aboitiz, reported a 23% decline in net income to P18.1 billion as asset impairments and weak cement demand weighed on results.
While consolidated core net income rose 15% to P125.5 billion, non-recurring losses of P7.4 billion, largely tied to asset impairments, dragged down the company’s overall earnings.
The fourth quarter saw a significant downturn with AEV posting a consolidated net loss of P645 million, reversing the P5.5 billion net income recorded in the same period in 2023. The decline was driven by the P7.5 billion in impairment losses related to Republic Cement & Building Materials, where weak market demand and lower selling prices led to a wider loss of P1.1 billion.
Despite the overall net income decline, AEV’s power and financial services businesses remained strong.
Aboitiz Power Corp.’s net income contribution rose by 4% to P18 billion, driven by higher generation margins, increased energy sales, and additional capacity from its Laoag and Cayanga solar plants.
Union Bank of the Philippines contributed P6 billion in net income to AEV, a 32% increase from P4.5 billion the previous year as higher consumer lending and improved efficiency boosted profitability.
The food and beverage segment provided a bright spot, with net income surging to ₱5.9 billion from ₱1.3 billion, helped by stabilizing commodity prices and AEV’s acquisition of a 40% stake in Coca-Cola Europacific Aboitiz Philippines.
In contrast, Aboitiz InfraCapital’s contribution fell 73% to ₱644 million, reflecting the absence of a ₱1.2 billion non-recurring gain recorded in 2023.
Aboitiz Land posted a net income of ₱943 million, down 9% year-on-year, primarily due to the lack of asset monetization gains that had supported earnings in the previous year.
Consolidated assets stood at ₱893 billion as of year-end, a 7% increase from 2023, while liabilities rose 8% to ₱496.6 billion.
AEV’s cash position weakened, with cash and equivalents dropping 28% to ₱80.8 billion.
