ABOITIZ Equity Ventures (AEV) on Tuesday reported that net income had fallen by 2.0 percent to P23.5 billion last year, from P24 billion in 2022, although it expressed optimism on growth prospects for 2024.
Core net income, minus nonrecurring net gains of P1.4 billion, would have been P22.1 billion last year, AEV said, 8.0 percent higher compared to the P20.5 billion recorded in 2022.
For the fourth quarter alone, the company's net income more than doubled to P5.5 billion from P2.7 billion.
"Building on our resilience and steady core performance, we are ready for another exciting phase of growth and innovation," Aboitiz Group President and Chief Executive Officer Sabin Aboitiz said in a statement.
"We are confident that 2024 will be a transformative year for AEV and its business units," he added.
AEV ramped up its diversification into the consumer market with a $1.8-billion buyout of Coca-Cola Beverages Philippines Inc. from The Coca-Cola Co. last month.
The company, through its power subsidiary, also plans to invest in gas projects with Manuel Pangilinan's Metro Pacific Investments Corp. and Ramon Ang-led San Miguel Global Power.
Power accounted for the lion's share of AEV's total earnings last year, at 67 percent. This was followed by financial services (18 percent), infrastructure (6 percent), food (5 percent) and real estate (4 percent).
In the power segment, Aboitiz Power Corp.'s income contribution expanded by 28 percent to P17.3 billion from P13.5 billion in 2022 on improvements in the generation, retail supply and distribution businesses.
In the banking business, Union Bank of the Philippines contributed income of P4.5 billion in 2023, down 29 percent from P6.3 billion the year before.
As for infrastructure, Aboitiz InfraCapital Inc. posted a net income contribution of P2.4 billion, up 26 percent from the P1.9 billion reported in 2022, thanks to higher land sales and lease earnings from its economic estates and growth of its airport business.
On the other hand, Republic Cement and Building Materials Inc.'s losses more than doubled to P789 million in 2023 from P323 million in 2022 on lower sales volume amid weak market demand.
AEV's food subsidiaries, meanwhile, returned to profitability and contributed a combined net income of P1.3 billion in 2023, reversing the P14-million loss incurred in the previous year.
The turnaround was mainly attributed to improved margins in the flour and agribusiness segments, aided by a decline in raw material costs and a better pricing strategy.
Led by Aboitiz Land, AEV's real estate businesses saw a 19-percent growth in net income to P1.0 billion from P865 million due to increased revenues from "higher sales performance and construction activity," coupled with gains from property sales.
The Aboitiz Group's holding company ended 2023 with consolidated assets of P827.5 billion. Total liabilities amounted to P452.1 billion, while total equity attributable to the parent firm's equity holders reached P272 billion.
AEV shares closed down 1.11 percent to P49 each on Tuesday amid a 0.67-drop for the benchmark Philippine Stock Exchange index.