Andrew Tan’s AGI nets P14B

TYCOON Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) grew its attributable net profit last year by 5.4 percent to P13.9 billion, driven by higher earnings contributed by its globalizing liquor unit Emperador Inc.

Excluding non-recurring items, AGI’s attributable core profit rose by 6.94 percent last year, based on the company’s regulatory filing.

Including minority interest, AGI’s net profit rose by 2.73 percent to P21.68 billion, based on AGI’s regulatory filing. Excluding non-recurring items, core net profit including minority interest rose by 3.5 percent to P22 billion.

“Attributable” net profit takes into account only the portion of the net income that goes to the equity holders of parent company and excludes minority interest. This has become the standard in reporting a company’s bottomline.

The group ended the year with revenues growing by 11.2 percent to P139 billion, net of P189 million non-recurring gain.

“The group’s financial performance continues to be compelling in spite of the challenges faced by the gaming business,” AGI said.

GADC – operator and master franchiser of the McDonald’s fast-food chain in the Philippines – chalked up P751 million in attributable net profit last year, down from P794 million in the previous year. This is the only AGI business that is not separately listed on the Philippine Stock Exchange.

Total revenues of GADC grew by 9 percent but this was outpaced by the increases in prices of imported raw materials and product mix shift and costs of utilities and crew labor. As a result, net profit contracted.

Higher revenues of GADC were attributed to the opening of 28 new restaurants renovation of 28 existing restaurants and expansion of business extensions such as delivery service, drive-thru and dessert centers. The increase in revenues was also attributed to the introduction of new products (Chicken Fillet Ala King, Cheesy Eggdesal) and limited time offer products (McGriddles, Shake Shake Fries, Twister Fries, Bacon Burgers, Dessert Campaigns, McRib, Chicken Muffin and Sweet Ham Special).

Likewise cited was an “aggressive” advertising/promotional campaigns to support extra value meals (Chicken McDo Price Reduction, Coke Glass), Everyday McSavers (Float, Sundae and Fries), McSaver Meals, Desserts and Breakfast. McDonald’s last year signed up the popular “Aldub” television loveteam of Alden Richards and Maine Mendoza a.k.a. “Yaya Dub” as product endorses.

Average sales per restaurant increased by 4 percent while business extensions and drive-thru provided a growth rate of 15 percent.

It was earlier reported that the following publicly listed units performed in 2015 as follows:

– Megaworld’s core net profit reached P10 billion, up by 10.58 percent as it unlocked more revenues from township development across Luzon, Visayas and Mindanao alongside leasing activities. Including non-recurring items, Megaworld’s net profit fell by 52 percent to P10.58 billion due to the one-time gain that bloated the comparative level in 2014 when property units were consolidated;

– Emperador, now the world’s largest brandy company, boosted its net profit by 12.2 percent to P6.96 billion, as the acquisition of Scottish whisky maker Whyte & Mackay jacked up revenues;

– Integrated gaming resort arm Travellers International Hotel Group – developer of Resorts World – saw its net profit fall by 26 percent to P4 billion as the regional gaming business contracted.

Non-recurring items in 2015 included the following: P181 million gain on sale of investment in an associate of property arm Megaworld Corp.,, P3.7 million gain on acquisition of a subsidiary of GADC, P3.5 million gain on interest and P120 million one-time expenses on the acquisition by Emperador.

In 2014, non-recurring items included a P520.2 million gain from acquisition and de-consolidation of subsidiaries of Megaworld and P4.6 million from acquisitions of GADC along with P310 million one-time expenses on acquisition by Emperador.

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