Aboitiz Equity Q1 net income down 27%

Aboitiz Equity Ventures Inc. (AEV) on Thursday reported a 27-percent drop in its consolidated net income during the first three months of the year, dragged by lower contributions from its power, banking, and food businesses.

In an emailed statement, AEV said its consolidated net income fell to P3.5 billion from the P4.8 billion it registered in the first quarter of 2018.

Consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) likewise declined by 11 percent to P12.4 billion from P13.9 billion.

"Despite challenges, our long-term fundamentals remain intact. Our growth platform has expanded to 10 other countries across the Asia Pacific, providing us natural listening posts for expansion opportunities," said AEV President and CEO Erramon Aboitiz.

"We continue to invest in all of our units both here and abroad. We remain committed to our purpose of driving change for a better world by advancing business and communities," he added.

In terms of business units, Aboitiz Power saw its net income fall by 9% to P2.8 billion, primarily on higher volume and cost of purchased power due to high spot market prices.

For banking, Union Bank posted 1 25% drop in its income to P1.1 billion from P1.4 billion previously while the food group noted a 48% decrease in its net income to P137 million from P264 million previously.

AEV's real estate segment AboitizLand likewise reported a consolidated net loss of P44 million, 174% lower than the P59 million last year due to the deferred recognition of industrial lot sales.

"Our economy continues to grow at a healthy rate, and that is great for us Filipinos as well as all of us in business who are supplying the different consumers in the Philippines," said Aboitiz. —Jon Viktor Cabuenas/KBK, GMA News