AGI nets P14.8B
Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. booked a 6 percent increase in net profit last year to P14.8 billion, citing continued improvement in operating efficiencies as consolidated revenues stood flat.
In a disclosure to the Philippine Stock Exchange on Thursday, AGI said including earnings attributable to minority interest, 2016 net profit had increased by 5 percent to P22.8 billion.
Consolidated revenues were flat at P139.7-billion compared to the previous year.
“Since about three-to-four years ago, the group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” AGI president Kingson Sian said.
Property arm Megaworld Corp. posted a 12 percent year-on-year growth in core net income to P11.6 billion last year. Consolidated revenues rose by 4 percent to P46.8-billion, driven mainly by its leasing operations which posted a 15 percent increase in revenues to P10 billion. About 60 percent of its rental revenues were contributed by its office segment which ended the year with 851,000 square meters in gross leasable area, reaffirming Megaworld’s position as the largest office developer and lessor in the country.
Emperador, now the world’s largest brandy company, recorded an 11 percent improvement in net income to P7.7-billion last year even as revenues fell by 6 percent to P41 billion. This performance was attributed to ongoing cost efficiencies given its fully integrated operations, bringing its gross profit margin to a record level of 37 percent. Of total revenues, the brandy business through Emperador and Fundador accounted for P30 billion, while the balance of P11.5billion was contributed by its whisky business through Whyte and Mackay.
Emperador’s flagship product, Emperador Brandy, is now being marketed in 51 countries, making its way to become a global brand.
Resorts World Manila (RWM) owner and operator Travellers International Hotel Group Inc. saw a 15.4-percent decline in net profit last year to P3.4 billion on slower high-roller or VIP gaming business alongside higher US dollar bond financing costs arising from the peso depreciation.
Travellers increased its cash flow by 4 percent to P6.4-billion as it reported gross revenues of P27.5 billion. Gross gaming revenues slipped by 2.3 percent to P23.6-billion. However, the company posted a steady growth in non-VIP segment and higher win rate.
Fast-food business Golden Arches Development Corp. (GADC) – which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand – reported a record net profit of P1.2 billion on the back of P22.6 billion in revenues. The net profit marked a 52 percent increase from the level reported a year ago while revenues went up by 20 percent.
The growth in GADC’s earnings was attributed to the 7 percent improvement in systemwide same-store-sales growth, cost efficiencies and ongoing store expansion. The fast-food business ended the year with total 520 operating stores throughout the country, compared to the 481 stores in the previous year.
“Despite our aggressive expansion strategy, our balance sheet remains healthy and financial gearing still very comfortable, with much room to take on new opportunities that may come our way,” Sian said.
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