Forex losses trim AEV net income to R15.9 billion

Aboitiz Equity Ventures, Inc. (AEV) reported that its net income for the first nine months of 2017 declined by 7.0 percent to R15.9 billion from R17.1 billion from the registered in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said it recognized non-recurring losses of R1.2 billion (versus last year’s loss of R17 million) coming from forex losses from the revaluation of dollar denominated loans and pre-termination costs on refinancing.

Without the one-offs, AEV’s core net income remained almost flat at R17.1 billion. AEV recorded a 14 percent increase in consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), from R36.2 billion to R41.4 billion.

Aboitiz Power Corporation’s (AboitizPower) income contribution to AEV increased by 4 percent from R11.6 billion to R12.1 billion.

Union Bank of the Philippines’ income contribution to AEV decreased by 21 percent from R4.0 billion to R3.1 billion as it recorded a net income of R6.4 billion for the first nine months of 2017, 22 percent lower compared to the R8.1 billion earned during the same period last year.

AEV’s non-listed food subsidiaries (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation and Pilmico International Pte. Ltd.) reported a net income of R1.2 billion for the first nine months of the year, 14 percent lower than last year’s R1.4 billion.

Real estate subsidiary Aboitiz Land, Inc.’s (AboitizLand) net income of R340 million for the first nine months of 2017 was 128 percent higher than the same period last year.