AGI net income more than doubled to P8.5B as of June

Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) more than doubled its attributable second quarter net profit to P6 billion coming from the low base seen last year when quarantine restrictions were at their strictest.

Liquor arm Emperador Inc.—the business unit that has defied the earnings downturn caused by the prolonged COVID-19 pandemic—broke a new record as its second quarter net income grew by 60 percent year-on-year to P3 billion. This sustained a 53-percent growth in first half profit to P5.1 billion.

At the conglomerate level, AGI’s attributable net income surged by 124 percent year-on-year to P8.5 billion in the first semester.

Sequentially, AGI’s second quarter net profit surged by over two times the P2.56 billion attributable net income booked in the first quarter despite the reimposition of lockdown measures through early April.

Consolidated revenues in the second quarter rose by 24 percent year-on-year to P39.3 billion.

Growth trajectory

“All of our business segments here and abroad managed to sustain the quarterly growth trajectory we have been experiencing since the third quarter of 2020, indicating the extent of pent-up consumer spending across the globe, capped only by the prevailing restrictions in those areas to curb the rise of the COVID-19 Delta variant,” AGI chief executive officer Kevin Tan said.

“We are also relentless in our efforts to fully recover from this pandemic-induced business slump as soon as we can, through our superior brands and distribution system, more innovative products and services, strong relationships with our partners, cost-effective operations, and our efficient digitalization strategy throughout all our business segments,” he added.

Emperador’s second quarter revenues rose by 22 percent year-on-year to P13.3 billion, bringing its six-month top line to P25.3 billion, 18 percent better year-on-year.

Megaworld’s second quarter attributable profit grew by 39 percent year-on-year. For the first six-month period, net income declined by 7 percent to P5 billion year-on-year.

Travellers International, the owner and operator of Resorts World Manila, felt the heavy weight of the renewed lockdowns which halted its gaming operations for the most part of the second quarter. This curbed its second quarter gross revenues by 12 percent to P4.6 billion from the first quarter, although this still represented a five-fold improvement from the very low base a year ago.

Despite the prevailing quarantine restrictions, fast-food arm Golden Arches Development Corp., operator of the McDonald’s franchise in the country, recorded P6.1 billion in second quarter sales revenues, up by 8 percent quarter on quarter and 108 percent year-on-year.

—Doris Dumlao-Abadilla