Alliance Global posted 11.2% drop in Q1 profit

ALLIANCE Global Group Inc. posted P3.5 billion in first quarter net profit—about 11.2 percent lower year-on-year, due to the decline in beverage earnings.

Excluding non-recurring gains, AGI’s core earnings had gone up by 4 percent, the company said in a statement Wednesday.

In the comparative first quarter of 2014, AGI posted P3.94 billion in net profit attributable to equity holders of parent.

Including minority interest, AGI said its net income stood at P5.6 billion in the first three months of this year, almost the same level of earnings seen in the same period of 2014.

This was achieved on consolidated revenues of P32.3 billion—around 5 percent higher year-on-year.

Beverage arm Emperador Inc. ended the first quarter with a net profit of P1.4 billion—18.6 percent lower than the P1.72 billion level posted in the previous year as the increase in excise taxes pared down the company’s operating margins.

Revenues amounted to about P8.9 billion in the first three months of 2015—a 16-percent increase year-on-year. Emperador posted a net income of P1.4 billion during the first quarter of this year.

The increase in liquor tax at the beginning of 2015 exerted some pressure on the company’s margin, a company official said.

Emperador earlier said it would launch major liquor products in the Philippines to cover all segments and categories in the market.

“Our consumer-centric businesses—real estate development, food and beverage manufacturing and distribution, integrated tourism development, and quick-service restaurants—all showed profitability in the first three months of this year,” AHI president Kingson Sian said, citing the developments at AGI.

“They all maintained their strong positions in their respective industries,” he added.

AGI’s operating units all delivered strong core earnings in the first three months of the year.

It was earlier reported that Megaworld Corp. posted a net profit of P2.35 billion in the first quarter—flat from the level seen the previous year due to non-recurring gains that lifted earnings during the comparative period.

On a recurring basis, Megaworld said on Wednesday that it had posted a 12.48-percent growth from the P2.09 billion in earnings reported during the same period last year.

In the first three months of the year, Resorts World Manila (RWM) owner and operator Travellers International Hotel Group Inc. posted a 2-percent year-on-year growth in net profit to P1.7 billion on the back of higher non-gaming revenues and cost management measures.

On the other hand, Golden Arches Development Corp. (GADC), master franchise-holder of American fastfood giant McDonald’s, posted a net income of almost P160 million.

“Our companies are all paving the way for future growth that will ultimately increase shareholder value,” Sian said. “Megaworld is building more townships this year. Our target is to have 20 township developments by the end of 2015.”

For Emperador, Sian said, the beverage arm would likely have its “busiest” year so far with product launches in the offing.

“One product was launched last month, and is now available in retail outlets, Smirnoff Mule, which is a blend of vodka, ginger beer and lime. Consumer response is positive and exciting,” Sian said.

“Travellers continues to expand Resorts World Manila where the Marriott Grand Ballroom—the largest ballroom in the country—just opened last month. Travellers will have more hotels, additional gaming area and retail space by the end of 2017,” Sian explained.

Also, Golden Arches is targeting to have 500 branches nationwide by the end of 2015, Sian said.