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AGI posts P12.5 billion first half profit

Updated

By James A. Loyola

Alliance Global Group, Inc. (AGI), the investment holding company of billionaire Dr. Andrew Tan, reported an almost flat net income of P12.5 billion in the first half of 2019 as against P12.45 billion during the same period last year.

Alliance Global Group, Inc. logo (mb.com.ph)

Alliance Global Group, Inc. logo
(mb.com.ph)

The firm said though that consolidated revenues rose 15 percent to P82.8 billion in the first semester of 2019 from P71.7 billion in the same period last year while attributable income grew 4 percent to P8.1 billion from last year’s P7.8 billion.

All of AGI’s major subsidiaries contributed to the robust topline growth. These include its real estate development arm Megaworld Corporation, gaming and leisure operator Travellers International Hotel Group, Inc., liquor subsidiary Emperador Inc. and quick service restaurants (QSR) unit under Golden Arches Development Corporation (GADC).

“We believe the Group’s strong topline performance was achieved on the back of a highly favorable domestic economy which cushioned the impact of some challenges in the global market,” said AGI Chief Executive Officer Kevin L. Tan.

However, Tan noted the “increasing cost pressures, some brought about by the very competitive environment, which have impacted on our margins.”

“Despite this, we remain confident that the collective growth strategies we have put in place – largely through product and market diversification, international pursuits for our spirits business and our ongoing expansion projects – are sound and will soon bear fruit,” he added.

Megaworld reported a 16 percent growth in attributable profit to P8.3 billion while Travellers International recorded a sharp 83 percent increase in EBITDA to P2.9 billion in the first half.

Emperador reported a 2 percent gain in attributable net income to P3.3 billion while GADC’s attributable net income inched up 1 percent to P751 million from P740 million the year before.

GADC, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, registered a 14 percent year-on-year increase in sales revenues to P15.4-billion, supported by a healthy same-store sales growth of 5.5 percent and its ongoing new store additions.

GADC’s total number of stores stood at 642 by end-June, increasing from 620 stores in end-2018.

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