MANILA, Philippines \u2014 Aboitiz Equity Ventures Inc. (AEV) managed to eke out gains in the first quarter despite the one-off foreign exchange losses from its power business and lower contributions from other business segments.<\/p>\n
AEV disclosed its first quarter net income increased by three percent to P4.8 billion.<\/p>\n
Power accounted for 64 percent of the group\u2019s total income followed by banking and financial services (30 percent), food (six percent), and land (one percent).<\/p>\n
\u201cOur diversified portfolio gives us the resilience to sail through varying business cycles. The underlying strength of our core operations and a vibrant economy keep us optimistic on our long-term fundamentals,\u201d AEV president and CEO Erramon Aboitiz said.<\/p>\n
The net income contribution of Aboitiz Power Corp. to AEV decreased by nine percent to P3.1 billion, even as core net income rose by four percent to P5.2 billion, due to higher unrealized foreign exchange losses.<\/p>\n
AboitizPower posted a net income of P4 billion in the first quarter, nine percent lower than the year before due to higher non-recurring forex losses on the revaluation of dollar denominated liabilities which amounted to P1.2 billion.<\/p>\n
However, without the one-off adjustments, AboitizPower\u2019s core net income rose four percent to P5.2 billion.<\/p>\n
AEV\u2019s banking unit\u2014Union Bank of the Philippines\u2014contributed P1.4 billion to groupwide earnings, up 32 percent year-on-year on higher revenues.<\/p>\n
Pilmico Foods Corp. and its subsidiaries reported a 10 percent decline in net income to P264 million, largely due to the higher cost of raw materials and operating expenses.<\/p>\n
The real estate business under Aboitiz Land Inc. and other subsidiaries reported a net income of P59 million, down 18 percent due to increased borrowing expenses for the funding of developments.
\nRepublic Cement and Building Materials Inc. saw a net loss of P82 million, a reversal of the P202 million net income contribution to AEV last year. This was attributed to energy input costs, which were higher compared to the same period a year ago.<\/p>\n