AGI grows Q1 profit to P4.4B, up 21%

Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) grew its attributable first quarter net profit by 21 percent year-on-year to P4.4 billion on higher earnings from its property development, liquor and fast-food businesses.

Consolidated revenues for the three-month period rose by 19 percent year to P41 billion.

Including earnings attributable to noncontrolling interest, net profit went up by 16 percent year-on-year to P6.5 billion.

“Our much-improved performance is a testament to our strong brand equity across all our business segments. We will continue to offer our premium products and excellent services to the market as we remain optimistic of the opportunities that lie ahead,” AGI chief executive officer Kevin Tan said in a disclosure to the Philippine Stock Exchange on Monday.

“We are mindful of the challenges in the external environment, but we will strive to work harder to sustain such good results,” added Tan.

Property arm Megaworld Corp., beverage arm Emperador Inc. and fast-food unit Golden Arches Development Corp. (GADC) all grew first quarter net profit at a double-digit pace compared to the previous year, making up for the decline in the earnings of Travellers International Hotel Group Inc., whose operating expenses and financing costs surged with the opening of new hotel and gaming space in Resorts World Manila.

GADC—which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand—boosted its attributable first quarter net profit by 16 percent year-on-year to P383 million.

Three-month sales revenues of GADC went up by 13 percent year-on-year to P7.5 billion, supported by a same-store sales growth of 4.8 percent alongside the opening of new stores.

GADC’s total number of stores reached 633 by end-March from 620 at end-2018. Its network expanded by an average of one new store per week since the start of the year.

Currently, McDonald’s has 62 “NXTGEN” stores, referring to the new stores with innovative features such as the self-ordering kiosks, modernized menu boards and card payment acceptance.

GADC plans to roll out more NXTGEN stores this year, elevating customer experience to a new level of convenience.

“We always need to keep our products and services relevant amid the changing times. That way, we promote our brand equity to keep our products and services at top of mind of our various publics,” Tan said.

It was earlier reported that the following units performed in the first quarter year-on-year as follows:

Megaworld grew attributable net profit by 16 percent to P3.8 billion, driven by a double-digit growth in earnings from residential development, rental and hotel operations;

Emperador grew net profit by 10 percent to P1.74 billion, driven by a 13 percent year-on-year growth in revenues to P11 billion;

Travellers, meanwhile, saw a 45-percent drop in first quarter net profit to P244.44 million on higher operating expenses and financing costs arising from the expansion of Resorts World Manila.