ANDREW Tan-led conglomerate Alliance Global Group, Inc. (AGI) saw flat net income growth in the first three months of 2018 as higher interest charges and unrealized foreign exchange losses weighed on earnings.
In a disclosure on Tuesday, Alliance Global said consolidated net profit stood at P5.4 billion, a one percent increase from the same period in 2017, while net income attributable to owners was down 2 percent at P3.5 billion from P3.6 billion previously.
However, consolidated revenues grew 5 percent to P35.3 billion from P33.7 billion last year as all of its businesses turned in solid results.
Township arm Megaworld Corp. posted core net income growth of 12.5 percent to P3.3 billion while attributable net income stood at P3.2 billion, marking an 11 percent increase.
Megaworld’s consolidated revenues grew 9 percent to P13.1 billion, helped by a healthy 17 percent growth in rental income to P3.4 billion and a 6 percent improvement in residential revenues to P8.8 billion.
Megaworld’s wholly-owned subsidiary Global-Estate Resorts, Inc. booked a 27-percent increase in net income to P399 million.
AGI’s brandy business, Emperador, Inc. saw net profit in the first quarter grow 11 percent to P1.66 billion driven by robust international operations.
Resorts World Manila operator Travellers International Hotel Group, Inc. remained in the red, with net income down 35 percent in the first quarter at P444 million.
Golden Arches Development Corp., which holds the exclusive franchise to operate the McDonald’s brand in the Philippines, reported a 23-percent growth in net income to P329 million, driven by a 12- percent increase in sales to P6.6 billion on the back of a 6.6 percent increment in same-store sales coupled with new store additions.
“Our operating performance in the first quarter 2018 remained stable, attributed to the hefty investments we continue to pour into our various businesses as part of our long-term growth strategy,” Alliance Global President Kingson Sian said.
Alliance Global has programmed P80 billion in capital expenditures this year, bulk of which will be spent for Megaworld’s further expansion.
Shares of Alliance Global closed up P0.04 at P13.64 apiece on Tuesday.