AGI net profit surges to P12.3B

Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) grew its nine-month net profit attributable to parent equity holders by 83.8 percent year on year to P9.9 billion on robust real estate and consumer businesses as well as one-time gains from the consolidation of newly acquired tourism unit Global Estate Resorts Inc. (GERI).

Including profit attributable to minority shareholders, AGI’s nine-month net profit surged 62.6 percent to a record P12.3 billion.

Flagship real estate arm Megaworld Corp. also reported a 62-percent growth in attributable net profit to P6.65 billion from the same period last year, benefiting from higher revenues from real estate sales, office and commercial rental and hotel earnings.

AGI booked P3.2 billion in acquisition gains when it consolidated GERI, formerly Fil-Estate Land, into its books. Excluding this nonrecurring item, however, AGI said its core net profit jumped 31 percent compared with a year ago.

Group-wide revenues increased by 52 percent to P49.2 billion during the period primarily due to a 51-percent growth in consumer products sales (P6.7 billion), 25-percent increase in real estate sales (P2.7 billion), 71-percent jump in realized gross profit on prior year’s real estate sales (P772 million), 36-percent rise in service rendering (P966 million), 64-percent expansion in its share in the net profit of associates and joint ventures (P859 million) and the income from acquisition of subsidiary (P3.2 billion).

Apart from the contribution of Megaworld, real estate revenues also included a P2.1-billion share in net profit of Travellers International Hotel group, which reported a higher net income of P4.2 billion this year compared with P2.5 billion a year ago. Revenues nearly doubled to P20.8 billion due to earnings from gaming, hotel, food and beverage, theater, cinema operations and retail shopping mall and commercial office space rentals in Resorts World Manila, which opened in August 2009.

Revenues from the food and beverage business also surged 89.2 percent from a year ago due to higher demand for Emperador Brandy and The Bar flavored alcoholic drinks. Pik-Nik sales also expanded at a double-digit rate.

The total number of McDonald’s stores as of end-September stood at 322 as 22 new restaurants were opened from a year ago.