AEV profit slips to P23.5 billion in 2023
Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) expects businesses to rebound this year with its entry into new segments after its earnings dipped to P23.5 billion in 2023.
AEV yesterday announced that its consolidated net income slipped by two percent from P24 billion in 2022 in spite of higher shares taken from across all of its units except in banking.
For 2023, AEV traced more than twothirds of its profit to power, while banking accounted for 18 percent of the total, with infrastructure, food and property chipping in six percent, five percent and four percent, respectively.
Looking ahead into this year, Aboitiz Group president and CEO Sabin Aboitiz believes that AEV is in a position to expand its businesses with its pipeline full of promising projects.
Last month, the company, together with Coca-Cola Europacific Partners, completed the acquisition of Coca-Cola Beverages Philippines Inc.
Aboitiz Power Corp. is joining Meralco PowerGen Corp. and San Miguel Global Power Holdings Corp. in a $3.3 billion investment on a liquefied natural gas project.
The facility, located in Batangas, can generate up to 2,500 megawatts, improving the country’s energy supply.
“Building on our resilience and steady core performance, we are ready for another exciting phase of growth and innovation,” Aboitiz said.
AboitizPower, the largest business under the Aboitiz Group, grew its profit contribution to AEV by 28 percent to P17.3 billion in 2023, from P13.5 billion in 2022.
On the contrary, Union Bank of the Philippines logged a 29 percent decrease in its profit share to AEV to P4.5 billion, as the bank tripled its credit loss provision to P14 billion.
Meanwhile, Aboitiz InfraCapital Inc. improved its net income contribution by 26 percent to P2.4 billion in 2023, from P1.9 billion in 2022. For 2024, the infrastructure arm of the Aboitiz Group is set to take full control of the Mactan-Cebu International Airport.
AEV’s food units also flipped in a profit share of P1.3 billion, reversing a net loss of P14 million in 2022. The subsidiaries gained from improved margins in the flour and agriculture segments, as prices of raw materials decreased globally.
Aboitiz Land Inc. also increased its profit contribution to P1 billion in 2023 from P865 million in 2022 on gains made from the development and sale of properties.