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By Likha C. Cuevas-Miel, Reporter
ALLIANCE Global Group Inc. (AGI) announced on
Tuesday that its first-quarter profit surged on the back of the
improvement in its real estate despite weakness in its fast-food
business caused by higher input costs.
In a statement, AGI said its profit attributable
to shareholders for the first three months this year jumped 84
percent to P910.4 million, including interest income and income
derived from investing activities of P279 million. Consolidated
revenues for its three main businesses rose 26 percent to P7.3
billion year on year. The company is currently focused on the
consumer business through Emperador Distillers Inc. (EDI) and Golden
Arches Development Corp. (GADC), and on the property business
through Megaworld Corp.
“AGI registered strong earnings in the first
quarter in spite of the challenges that face our economy. Our
consumer business will continue to be affected by inflationary
pressures while our property business remains resilient and should
maintain its growth momentum,” Kingson Sian, AGI president and
chief operating officer, said.
The holding company’s real- estate business
remained the biggest revenue contributor as Megaworld posted a net
income growth of 29 percent to P1.01 billion year on year with
revenues jumping 63 percent to P4.67 billion.
Key drivers for this growth came from
real-estate sales that surged 79 percent to P3.31 billion as the
company focused on mid-income residential and business process
outsourcing (BPO) office developments.
EDI, which AGI acquired in February last year,
produces the Emperador and Generoso brands of brandy. This will be
the first full year of operations for EDI under the holding company.
End-March earnings at the brandy-maker came in at P160 million.
GADC, which holds the master franchise of
McDonald’s, suffered a 73-percent earnings decline to P16.5
million, even as revenues climbed 6 percent to P1.89 billion year on
year. Rising inflation pulled down growth, with cost of sales
increasing 9.7 percent to P1.54 billion. Operating expenses also
rose 16 percent, with incremental expenses of P34 million due to
one-time expenses incurred for the fast-food company’s expansion
nationwide. GADC is planning to open at least 30 outlets this year
with six new stores opened in the first quarter.
“The company remains focused on attaining its
net profit goal of P3.9 billion this year in spite of a challenging
business climate,” Sian said.
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