October 29, 2014
Filipino business conglomerate Aboitiz Equity Ventures Inc., which has interests in power generation, banking, real estate and feed production, has announced a nine-month profit of PHP14.3 billion (US$319.7 million), down 14% year-on-year.
Its food and feed unit, Pilmico Foods Corp., managed a modest 1% year-on-year increase in income contribution to PHP942.2 million (US$21 million) due to the weak performance of the feeds division, in turn as a result of the decline in margins and expiration of the income tax holiday of Iligan Feedmill.
Pilmico Foods manufactures and sells flour, feeds and their by-products in the Philippines.
In July this year, a wholly-owned subsidiary of Aboitiz Equity Ventures Inc., Pilmico International Pte. Ltd., bought 70% of the shares of Vinh Hoan Corp., Vietnam's fourth largest aqua feed producer, as part of the conglomerate's overseas expansion programme.
Though it continues to be the biggest contributor to the conglomerate's overall income, its power generation unit, Aboitiz Power Corp., had the biggest drop in profit in the January-September period. Its contribution was recorded at PHP10.1 billion (US$225.8 million), down 8% year-on-year due to various factors, including reduced operations for one of its power plants and the expiration of another plant's income tax holiday.
For the nine-month period, power accounted for 72% of total business, followed by the banking, food and real estate units with income contributions of 17%, 7%, and 4%, respectively.
