AEV seeks to grow non-power businesses

Conglomerate Aboitiz Equity Ventures Inc. (AEV) aims to significantly expand the contribution of its non-power business in the coming years as part of the group’s diversification strategy.

“Our objective is to have at least 50 percent of our EBITDA coming from the non-power business,” AEV chief financial officer Jose Emmanuel Hilado said.

Power accounted for 67 percent of AEV’s total net income in 2023, while financial services accounted for 18 percent.

Net income contributions from infrastructure, food and real estate strategic business units were at single digits.

After the group’s successful acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) early this year, Hilado said the company remains open for other potential acquisitions.

“I cannot identify a specific asset at this point, but suffice to say that as part of our diversification strategy, we will continue to pursue opportunities as they come,” he said.

“The consumer market is where we see more opportunities simply because we have a young population and strong consumer consumption and this will continue to anchor our economic growth in the Philippines,” Hilado said.

The Aboitiz Group more than doubled its capex to P153 billion this year, with a majority allotted to its renewable energy projects in the pipeline.

Further investments are being made to develop its retail banking business, support utility infrastructure projects and expand its food group, among others.

The holding company is allotted with 29 percent or P44 billion of the group’s capex, of which P40 billion is earmarked for the acquisition of CCBPI, the bottling arm of Coca Cola in the country.

The joint acquisition, valued at $1.8 billion, gives AEV a 40-percent stake in CCBPI and access to its over 17 brands of alcoholic and non-alcoholic beverages.