Aboitiz holding firm grapples with forex losses, first half net income slides 11%

Non-recurring losses due primarily to foreign exchange losses weighed heavily on the profitability of the holding company of the Aboitiz clan in the first half.

In a stock exchange filing, AEV said net income slipped 11 percent to P10.5 billion, mainly due to non-recurring losses of P656 million as a result of foreign exchange losses from the revaluation of US dollar cash and liquid financial instruments.

This is compared to the P2.7 billion in non-recurring gains recorded by the company during the first half of 2022.

AEV said that without these one-off losses, its core net income was up by 23 percent year-on-year at P11.1 billion.

Power remained the conglomerate’s top income contributor, accounting for 72 percent or P9.3 billion.

Financial services, meanwhile, accounted for 25 percent of AEV’s earnings, with UnionBank’s contribution improving four percent to P3.2 billion.

AEV’s non-listed real estate businesses consisting of Aboitiz Land and its subsidiaries reported a consolidated net income of P389 million, 19 percent lower than the previous year.

Aboitiz InfraCapital reported a 63 percent drop in earnings to P334 million, while AEV’s non-listed food subsidiaries saw a seven percent decline in profit to P181 million.

“As we continue to navigate a very dynamic landscape, AEV remains steadfast in our commitment to deliver value to our shareholders, support our communities, and contribute to the nation’s economic recovery,” Aboitiz Group president and CEO Sabin Aboitiz said.

“We have a firm eye on the future, capitalizing on new opportunities and facing challenges with innovation and sustainability at our core,” he added.