Aboitiz posts 13.5% profit hike

Profits of Aboitiz Equity Ventures Inc. (AEV) rose 13.5 percent in the first quarter this year to P440 million as a result of the steady income growth of its banking and shipping businesses.

In a disclosure to the Philippine Stock Exchange, AEV said its power companies posted the largest contribution to the first quarter income with a combined total of P219 million. This, however, is 20 percent lower than their combined contribution in the same period last year. The decrease is due to lower profits from Luzon Hydro Corp. and the two diesel plants in Mindanao – Western Mindanao Power Corp. and Southern Philippines Power Corp.

AEV’s banking unit, Union Bank of the Philippines, pumped in P172 million in income or seven percent higher than the previous level while the transport group contributed P47 million, up 26 percent than the year ago figure.

Pilmico Foods Corp., on the other hand, contributed P104 million to AEV’s first quarter income or an increase of 87 percent from a year earlier.

AEV’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to P1.2 billion in the first quarter this year, four percent higher than the same period last year.

As of end-March 2004, AEV’s total assets grew 10 percent to

P32 billion while consolidated debt went up 11 percent to P14.8 billion. Parent company debt increased by 16 percent to P4.46 billion at the end of the first quarter this year.

Stockholders’ equity increased by 10 percent to P17 billion while its current ratio stood at 1.21. Net debt-to-equity ratio, however, was at only 0.56.

AEV’s cash balance remained high at P2.6 billion even after paying cash dividends of P497 million equivalent to P0.10 per common share on March 10.

AEV is the publicly-listed holding and investment management company of the Aboitiz group. Through its majority and minority-owned subsidiaries, AEV is engaged in various business activities in the Philippines, including electricity generation and distribution, financial services, food production and transportation. – Zinnia dela Peña