Aboitiz optimistic on growth prospects for ’24, says exec

ABOITIZ Equity Ventures Inc. (AEV) on Monday said it is confident of posting growth this year as it focuses on the integration of its past acquisitions.

Jose Emmanuel Hilado, the company’s CFO, said the conglomerate is on track to raising the contribution of its non-power business to 50 percent of earnings before interest tax depreciation and amortization (EBITDA) as it integrates the consumer loans business of lender Citibank to Union Bank of the Philippines, the operation of the Mactan International Airport and the Coca-cola Bottlers Philippines Inc. (CCBPI).

The group acquired Citibank’s credit card business for P55 billion. It also bought Megawide Construction Corp. out of the Mactan-cebu

International Airport operation for P25 billion.

For Coca-cola, the Aboitiz Group has 40 percent of the $1.8-billion acquisition of the local bottling operation. It completed the acquisition with Coca-cola Europacific Partners Plc (CCEP).

“Integration efforts are mostly with CCEP as they own 60 percent and will consolidate. But even that does not require much effort as the management team is intact,” Hilado said.

He said Aboitiz can benefit from the Coca-cola consolidation through the group’s ability to provide financing facilities to distributors of Coca-cola bottlers via its lending business under Unionbank.

“This allows them to access lower financing costs and therefore, the ability to expand the inventory and distribution capabilities.”

Hilado also said AEV sees opportunities in the consumer market.

“Simply because we have a young population and hence strong consumer consumption. And this will continue to anchor economic growth in the Philippines.”

Aboitiz had said its capital spending this year will hit P153 billion, more than double its allocation for 2023.

The group said a big portion of the spending will go to the group’s renewable energy (RE) projects.

The power unit Aboitiz Power Corp. is getting P73 billion or 48 percent of the group capex, to bankroll over 1,000 megawatts of RE projects in construction and development. Aboitizpower aims to have a 4,600 MW portfolio within the next decade.

AEV, the holding firm, meanwhile will get P44 billion, or 29 percent of total, of which P40 billion is earmarked for the acquisition of CCBPI.

The infrastructure business under Aboitiz Infracapital will have P25 billion to strengthen and optimize existing assets, while sustaining its growth by exploring new projects and synergies within the Group, the group said.

The group’s food business under Pilmico and Gold Coin Group will get P4 billion as capex, to be used mostly for its agribusiness expansion projects.

The realty business under Aboitizland, meanwhile, will receive P3.3 billion as capital spending to support ongoing projects.

Hilado said the company is keeping its options open when it comes to its fundraising activity.

“If the rates are favorable, we will consider refinancing the maturing bonds. Otherwise, we can pay off or refinance through other means.”