AGI Q1 profit up 2% at P5.4B

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Company continues to build sustainable, higher-margin businesses

TAN-led holding firm Alliance Global Group, Inc. (AGI) said on Monday its net income for the first quarter of 2017 rose 2 percent to P5.4 billion from P5.3 billion posted in the same period last year on the back of ongoing efforts to build more sustainable and higher-margin businesses across its major subsidiaries.

In a disclosure to the Philippine Stock Exchange (PSE), AGI said net income attributable to the parent stood at P3.56 billion, reflecting a 7 percent increase from last year’s P3.3 billion.

Consolidated revenues increased 2 percent to P33.7 billion.


“The various businesses within our group continue to evolve to ensure a more stable platform that is capable of capturing the country’s economic growth waves,” AGI President Kingson Sian said.

“AGI now enters a new phase of development, with all of its subsidiaries better positioned to post quality earnings, and capable of sustaining their momentum over a long cycle,” he added.

Its subsidiary Megaworld Corp., the country’s largest property developer, reported a net income of P2.9 billion, a 10 percent increase from last year’s P2.63 billion.

Megaworld’s consolidated revenues grew 5 percent to P12 billion on the back of a 26 percent increase in rental income to P2.9 billion, 23 percent growth in hotel revenues to P333 million, and 2 percent rise in residential revenues to P8.3 billion.

AGI’s liquor business Emperador Inc. chalked up a 7 percent profit increase to P1.5 billion on revenues of P9 billion, driven by continued cost efficiencies from its fully integrated operations, resulting in a higher gross profit margin of 34 percent, and operating margins of 22 percent.

In the first three months of the year, Emperador completed the acquisition of Bodegas Las Copas SL from Pernod Ricard of the Domecq and Pedro Domecq brands, which includes the brandy, spirit and wine business linked to those brands around the world. The acquisition cost 80.9 million euros, or approximately P4.4 billion.

Hotel business Travellers International Hotel Group, Inc., which owns Resorts World Manila (RWM), posted steady earnings before interest, tax, depreciation and amortization (Ebitda) of P1.4 billion on gross revenues of P6.3 billion.

Gross gaming revenues stood at P5.3 billion, while non-gaming revenues contributed P1.1 billion, up 9 percent year-on-year. RWM’s hotel operations also gained from increased capacity of 1,454 rooms, with the additional hotel rooms coming from Marriott West Wing, and higher average occupancy rate of 86 percent for the same period.

Food business Golden Arches Development, which handles McDonald’s franchise in the Philippines, posted a 13 percent year-on-year rise in revenues to P5.9 billion and net income of P271 million, up 42 percent from last year. The company ended the first quarter with a total of 562 stores nationwide against 484 stores in 2016.

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