AGI nets P6.72B

Andrew Tan, chair of Emperador Distillers Inc., at the iconic Bodegas Fundador.

Tycoon Andrew Tan-led Alliance Global Group Inc. posted P6.72 billion in first semester net profit attributable to equity holders, down by 8 percent year-on-year on slower earnings contribution from its integrated gaming resort and liquor businesses.

Including earnings attributable to minority interest, AGI’s net profit in the first semester amounted to P10 billion versus P11.34 billion in the same period last year. Six-month revenues were flat at P66.8 billion.

Performance across AGI’s operating units was mixed, with property arm Megaworld Corp. and the quick service restaurant business under Golden Arches Development Corp. (GADC) delivering strong results while the liquor business under Emperador Inc. and gaming business under Travellers International Hotel Group lagged.

“We remain confident of our growth prospects, recognizing the various opportunities that continue to present themselves in the economy,” AGI president Kingson Sian. “As such, we are steadfast in our investment commitments across all our business segments, maintaining our capex (capital expenditure) budget of about P80 billion for the year. We strongly believe in spending for our future,” Sian said.

Megaworld accounted for 64 percent of attributable net profit while Emperador accounted for 33 percent. Travellers took up 3 percent while GADC had a 4 percent share.

GADC, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, grew its net profit by 20 percent year-on-year to P595 million in the first semester as sales revenues expanded by 12 percent to P12.2 billion. The earnings growth driven by systemwide same store-sales growth of 5 percent alongside ongoing store expansion program.

The fast-food chain ended the first half 2017 with a total of 533 stores nationwide compared with 494 stores a year before.

It was earlier reported that Megaworld booked an 11-percent year-on-year increase in first semester net profit to P6.69 billion on the back of higher recurring earnings from its leasing portfolio.

On the other hand, Emperador saw a 20.6-percent year-on-year drop in first semester net profit to P2.7 billion due to a slowdown in revenues from the domestic liquor business.

Travellers, developer and operator of Resorts World Manila, also saw a 79-percent year-on-year decline in first semester net profit to P375 million following the suspension of gaming operations for nearly a month in June.