Q2 2026 Aboitiz Equity Ventures Inc Earnings Call Transcript
Key Points
- Group beneficial EBITDA rose 25% year-on-year to PHP37.9 billion in H1 2026, driven by strong performance across most strategic business units.
- Aboitiz Power remained the largest earnings contributor, with beneficial EBITDA up 44% year-on-year, supported by higher contracted capacity, favorable energy prices, and new renewable capacity.
- Union Bank more than doubled its beneficial contribution, driven by sustained loan growth and improved net interest margins.
- Aboitiz Foods' core agribusiness, trading, and FRA segments delivered strong volume growth, with regional agribusiness EBITDA up 31% year-on-year.
- Aboitiz InfraCapital's airports business, led by Mactan Cebu International Airport, saw revenue grow 38% year-on-year, with passenger traffic up 9% at MCIA.
- Coca-Cola Euro-Pacific Aboitiz Philippines delivered 11% revenue growth and 8% volume growth despite inflationary pressures, supported by successful marketing and new product launches.
- The group's balance sheet remains healthy, with net debt-to-equity improving to 0.95x and gross debt declining, reflecting strong capital discipline.
- Aboitiz Real Estate's residential segment returned to profitability, with net income of PHP102 million, driven by improved buyer quality and lower forfeitures.
- Economic Estates reservation sales surged 70% year-on-year, with industrial reservations nearly doubling, indicating strong demand for industrial parks.
- Aboitiz InfraCapital's net loss narrowed by 48% year-on-year, with airports turning profitable and water and digital infrastructure improving operating income.
- Aboitiz Foods' downstream operations, particularly farm and meat segments, faced significant headwinds, with farm EBITDA down 135% and meat posting a PHP103 million loss.
- The meat segment's revenue declined 35% due to a deliberate rationalization of China traditional trade, impacting volumes and profitability.
- Farm revenue fell 29% year-on-year, pressured by depressed live-hog selling prices and lower production productivity.
- Aboitiz Real Estate's Economic Estates segment reported a net loss of PHP140 million, driven by timing of revenue recognition, with several transactions not meeting milestones.
- Consolidated revenue for Aboitiz Real Estate declined 11% year-on-year, reflecting lower lot sales recognition and a high base in the prior year.
- Rising oil prices and the Middle East conflict have increased logistics and freight costs, creating margin pressures across food and beverage operations.
- The Philippine peso's continued weakness poses currency risks, with 65% of Aboitiz Foods' cost base exposed to FX fluctuations, though mitigated by hedging.
- Aboitiz InfraCapital's water and digital infrastructure businesses still reported net losses, though narrowing, due to non-cash amortization and scaling-up costs.
- Corporate expenses at Aboitiz InfraCapital increased due to a PHP55 million non-cash write-off related to project development costs.
- The GIP transaction for Aboitiz InfraCapital has not yet closed, creating uncertainty around future capital deployment and operational optimization.
Good afternoon. Welcome to Aboidiz Equity Ventures earnings results briefing for the first half of 2026. My name is Jackie Desus, and I will be the moderator for today's call.
(Operator Instructions)
For today's call, the CFO of Aboitiz Foods, Po Beng Nang, will kick us off. He will be followed by Rafael Fernandez-Temesa, President and CEO of Aboitiz Real Estate Group. After him, Forcks Roque, Vice President and Head of Investments of Aboitiz Infracapital, will update us with their performance. And then finally, John Rubio, the Chief Strategy Officer of Aboitiz Equity Ventures, will close us out with the group's consolidated financial performance.
After the presentations, you will open the floor for Q&A. For questions on the earnings results of Union Bank and Aboidiz Power, which were already discussed in separate sessions, we will be addressing those offline after this briefing. So with that, let me turn you over to Po Beng.
Hi, good afternoon everyone, and thank you for
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