Philippines – Aboitiz Equity Ventures Inc., or AVE, will increase its profit by 9% in the first nine months of 2022.
AVE reported an improvement of 9% in combined net income for the initial nine months of this year. It increased from P19.5 billion to P21.4 billion, which was part of the documentation during the same period in 2021.
Related to the Philippine Stock Exchange, this company stated that the distinguished recurring profits of P5.3 billion were because of the Foreign Exchange or Forex gains. It was from the reassessment of liquid funding instruments and US dollar cash, compared to the non-recurring gains of 2021 worth P83 million from the Forex gain.
The core net income of AEV in the first nine months of the year dropped 17%, amounting to P16.1 billion without the one-off increases. EBITDA had P54.0 billion in the initial nine this year, which is 9% more than the recorded P49.5 billion from the same movement last year, thanks to the Forex gain.
Income influences from Infrastructure, Food SBUs, and Real Estate were 1%, 1%, and 10%, respectively.
The income contribution of AEV for the initial nine months this year amounted to P10.1 billion, which is 16% lower than the recorded P12.1 billion recorded in the initial nine months of last year because of the reduced ownership of AEV.
The income contribution of Union Bank to AEV in the primary nine months of this year was P5.1 billion, which is 5% lower compared to P5.4 billion in the same period last year.
AEV’s non-listed real estate enterprises, including Aboitiz Land, Inc., Lima Land, Inc., and its subsidiaries, consolidated a gain of P1.7 billion. It was 167% more than the P646 million in 2021.
The AboitizLand contributed P3.8 billion in income this year, 30% more than the income contributions in 2021. The residential enterprise segment contributed the most to overall income at 57%, while the industrial and commercial segments contributed 43%.
The income contributed by the non-listed food subsidiaries of AEV amounted to P260 million this year, which is 83% lower than the recorded P1.5 billion in 2021.
The food group listed an EBITDA worth P4.2 billion despite the increasing input costs because of the sharp boost in commodity prices. The YoY was 14% higher because of the margin recoveries from the Farms, Agribusiness, and Commodity Trading sections.
The Food and Nutrition section, consisting of meats, farms, flour, and trading divisions, listed a P103 million net gain in the primary nine months this year, with a lower YoY gain at 85%. It’s because of the lower taxes listed for the farm division last year from tax changes concerning the 2020 Income Tax Holiday Incentives.