AGI posts 41% profit growth
Bottom line for 2013 seen rising by 20%
Andrew Tan-led holding firm Alliance Global Group Inc. (AGI) expects its net income to grow by at least a fifth in 2013, after reporting record profit last year.
In a statement, AGI said it achieved another milestone as its net profit hit P20.8 billion in 2012, up by 41 percent from 2011, as the growing economy boosted sales across all its business segments.
“This year will be another banner year for AGI. We expect our various businesses to fully capitalize on the strong and positive macro environment. A minimum growth of 20 percent in net profit is quite achievable,” AGI chairman Andrew Tan said in a statement.
Commenting on the firm’s 2012 performance, Tan said last year saw the company breaching the P20-billion profit level.
“It only highlights the underlying strength of our various businesses, from consumer and property to BPO and tourism, all growth drivers of the Philippine economy,” Tan said.
Core net income attributable to AGI shareholders jumped by 60 percent to P13.6 billion in 2012 from P8.5 billion a year before.
AGI’s growth was led by main subsidiaries Megaworld Corp., Emperador Distillers Inc. and Travellers International Hotel Group Inc.—which collectively contributed 90 percent of the group’s profit.
Megaworld, one of the leading property development companies in the Philippines, set a record profit in 2012 of P7.3 billion, up by 21 percent from the P6 billion registered in 2011.
Last year, Megaworld and its subsidiaries reported more than P63 billion in reservation sales involving more than 12,000 residential units. Megaworld posted rental income of P5 billion in 2012, a 31-percent rise from P3.8 billion in 2011.
“We are optimistic about the property sector, and we expect sustained growth momentum in our two main business segments, which are residential and BPO office developments,” Tan said.
Megaworld earlier disclosed target of doubling its rental income to P10 billion over the next five years.
Emperador, AGI’s liquor arm, also posted “remarkable growth,” the holding firm said.
In a statement, AGI reported that Emperador’s profit grew by 117 percent in 2012 to P5 billion, up from P2.3 billion in 2011.
The growth came from increased sales of its brandy, Emperador, particularly the Emperador Light, which sold more than 31 million cases last year.
In the meantime, Travellers, operating under the Resorts World Manila brand, also enjoyed another record year with a net profit of P6.73 billion, up 39 percent from P4.84 billion in 2011.
Net profit attributable to AGI shareholders in 2012 grew to P3.12 billion from P2.21 billion in 2011.
AGI said that in the second quarter of 2013, Travellers will commence development on the third phase of Resorts World Manila, which is composed of two hotels under the Sheraton and Hilton international brands, and the expansion of the existing Maxims and Marriott Hotels.
The hotel room count of Resorts World Manila is expected to increase from the existing 1,226 rooms to about 3,400 rooms within the next five years. Development will also commence at the Resorts World Bayshore site in Entertainment City within the year.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94