Conglomerate Aboitiz Equity Ventures Inc. (AEV) is increasing by 36.7 percent its 2025 capital expenditures to P104.6 billion from P76.5 billion in 2024.
AEV said in a recent investors’ briefing bulk of this year’s capital spending, or P78.1 billion, would go to power generation business, which is aggressively expanding its renewable energy (RE) portfolio.
It also earmarked P16.6 billion in capital outlay for the infrastructure business.
Aboitiz InfraCapital Inc. (AIC) recently bagged the Bohol-Panglao International Airport and the Laguindingan International Airport in Misamis Oriental.
AEV’s banking unit Union Bank of the Philippines will spend P3.7 billion this year, while its food and beverage business which includes Coca-Cola Beverages Philippines Inc. (CCBPI) would receive P3.6 billion.
The balance was earmarked for AEV’s real estate unit.
Nearly half of last year’s capital spending was set aside for AEV’s acquisition of a 40-percent interest in CCBPI.
AEV teamed up with Coca-Cola Europacific Partners Plc. (CCEP) to acquire CCBPI for $1.8 billion.
The acquisition was in line with the conglomerate’s move to expand into branded consumer goods space and diversify its business portfolio which includes power generation, banking, property, infrastructure and agriculture sector.
AEV saw its net income fall 23 percent in 2024 to P18. 1 billion from P23. 5 billion in 2023 as it recognized a P7. 4-billion one-time loss mostly related to an asset impairment.
Core net income, which excludes nonrecurring income or expense items outside normal activities, however, rose 15 percent to P25.5 billion from P22.1 billion in 2023.
Power accounted for 59 percent of the consolidated net income contributions from core business in 2024, while financial services and food and beverage each accounted for 20 percent.