ALLIANCE Global Group Inc. (AGI), the listed conglomerate of businessman Andrew Tan, saw its net income in the first nine months of the year increase 7 percent from a year ago to P17.3 billion on the back of cost efficiencies and better sales.
In a statement on Monday, the company said consolidated revenues in the nine months were up 2 percent at P101.6 billion.
For the third quarter alone, profit grew 26 percent from a year ago to P6 billion, while revenues reached P34.5 billion.
“We have been deliberate in the execution of our growth strategies for each of our key businesses, bearing in mind the changing competitive landscape in the various sectors we are in,” AGI president Kingson U. Sian said.
Sian noted that property vehicle Megaworld Corp’s investments in properties is now paying off in the form of increased recurring income, while casino operator Travellers International Hotel Group Inc. is now benefiting from the expanded amenities at Resorts World Manila.
He added that AGI’s McDonald’s franchise held by Golden Arches Development Corp. (GADC) continues with its store expansion program, thereby boosting profit performance, while liquor arm Emperador continues to grow its footprint locally and internationally with its renowned brands Whyte & Mackay and Fundador in the whiskey and brandy segments.
Megaworld saw profits grow 11 percent to P9.3 billion in the first nine months from a year ago on improved margins, while its consolidated revenues rose 5 percent to P35.3 billion on higher office and commercial rental incomes.
Travellers’ net income grew 5 percent in the first nine months to P3 billion while its gross revenues reached P20.8 billion, driven by a 14 percent increase in gaming revenues to P6.2 billion and an 11 percent sales increase in the food & beverage and hotel operations.
Nine-month profit at Emperador went up by 5 percent to P4.9 billion on improved operating efficiencies, while its consolidated revenues hit P27.9 billion. The liquor firm attributed the sales growth to expanded markets through its brands Whyte & Mackay for whiskey, and Emperador and Fundador brands for brandy.
GADC, the exclusive franchisee of McDonald’s in the Philippines, saw net income jump 57 percent in the nine months to P819 million as sales climbed 11 percent to P16.4 billion. System-wide store sales – or the overall sales of franchised and company-owned stores — improved by 8 percent year on year.
“AGI is operationally leveraged to take advantage of any improvement in market conditions. We look forward to the seasonal uptick in sales on the back of the coming holiday spending which is seen to help boost our profitability,” Sian said.
AGI has a two-year capital spending program of P150 billion for 2016 and 2017 to fund expansion across its businesses. Close to P100 billion of this was allotted for Megaworld. The spending program will be financed by a combination of debt and internally generated fund sources, Sian said earlier.
AGI is the umbrella conglomerate of tycoon Andrew Tan which is listed on the Philippine Stock Exchange. It holds his businesses in property development (Megaworld); spirits and brandy manufacture (Emperador); quick-service restaurants via McDonald’s franchise (GADC); and integrated tourism development businesses (Travellers).