ALLIANCE Global Group, Inc. (AGI), the listed holding firm of business tycoon Andrew Tan, said its net income rose to P22.8 billion in 2016, a 5 percent increase from the P21.7 billion recorded in 2015.
“Since about three to four years ago, the group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” AGI President Kingson Sian said in a statement on Thursday.
Its property subsidiary Megaworld Corp. posted core net income of P11.6 billion, up 12 percent year-on-year, while consolidated revenues rose 4 percent to P46.8 billion on the back of strong leasing operations, which posted a 15 percent increase in revenues to P10 billion.
About 60 percent of Megaworld’s rentals were contributed by its office segment, which ended the year with 851,000 square meters in gross leasable area (GLA). AGI said this reaffirmed Megaworld’s position as the Philippine’s largest office developer and lessor.
Its brandy company, Emperador, recorded an 11 percent improvement in net income to P7.7 billion in 2016, on revenues of P41 billion.
“We trace the company’s strong performance to ongoing cost efficiencies given its fully integrated operations, bringing its gross profit margin to a record level of 36 percent last year,” AGI said of Emperador.
“Of the total revenues, the brandy business through Emperador and Fundador accounted for P30 billion, while the remaining P11.5 billion was contributed by its whisky business through Whyte and Mackay,” the company said.
Emperador acquired Whyte and Mackay in 2014, and Bodegas Fundador in 2015.
Resorts operator Travellers International Hotel Group Inc. posted earnings before interest, tax, depreciation and amortization (EBITDA) growth of 4 percent year-on-year to P6.4 billion, as it recorded gross revenues of P27.5 billion.
“Gross gaming revenues reached P23.6 billion, helped by the steady growth in non-VIP segment and higher win rate. Meanwhile, non-gaming revenues from its hotel operations, F&B, shopping mall and other income grew 10 percent to P3.8 billion. The Marriott West Wing, which became operational in November last year, added another 228 rooms, bringing to 1,454 its total hotel room count,” AGI said.
Meanwhile, Global Arches Development Corp., which holds the local franchise for the McDonald’s brand, posted a record P22.6 billion revenue and P1.2 billion profit.
Global Arches’ earnings growth was driven by a 7 percent improvement in system-wide same-store sales growth, cost efficiencies and ongoing store expansion. It ended 2016 with a total of 520 operating stores in the Philippines as compared to 481 stores in 2015.
“Despite our aggressive expansion strategy, our balance sheet remains healthy and financial gearing still very comfortable, with much room to take on new opportunities that may come our way,” Sian said.