Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) grew its nine-month attributable net profit by 106 percent year-on-year to P12 billion, driven by the robust growth in earnings contributed by its property and liquor operations and the turnaround of its gaming resort and fast-food businesses.
For the third quarter alone, attributable net income jumped by 73 percent year-on-year to P3.5 billion as revenues improved by 28 percent to P38.9 billion.
AGI has now delivered close to 100 percent of the P12.13-billion earnings expected by the market for the whole of this year.
Consolidated revenues rose by 20 percent year-on-year to P110 billion during the nine-month period.
“AGI delivered these strong results even amid the health crisis while tapping on its internal strengths: its differentiated products and services, extensive distribution network, diversified operations, massive landbank and healthy balance sheet,” AGI chief executive Kevin Tan said in a disclosure to the Philippine Stock Exchange on Monday.
Biggest moneymakers
“The pandemic has also prompted our organization to maintain our cost efficiencies in most areas of our operations. This provided a major boost in our nine-month consolidated net margin, which went up 500 basis points from year ago level,” he added.
Property arm Megaworld Corp. and liquor arm Emperador Inc. were AGI’s biggest moneymakers for the nine-month period.
Megaworld grew its net income to P8.2 billion, rising by 10 percent year-on-year, driven by improving residential development revenues as construction activities expanded.
Emperador’s net profit increased by 24 percent year-on-year to P7.3 billion, nearly matching its full year 2020 performance. This, as consolidated revenues reached P38.4 billion, 11-percent higher year-on-year, due to strong whisky and premium brandy sales across the globe despite logistical challenges.
Recovering from losses
Travellers International, the owner and operator of Resorts World Manila, booked a net income of P1.9 billion, reversing the losses of P5.4 billion recorded the year before. However, this included P5.6 billion in one-time gain from the services rendered by its subsidiary in relation to its Westside City project.
Despite the reimposition of lockdown measures in the third quarter, Travellers’ gross revenues increased by 36 percent year-on-year to P5 billion, which also improved by 9 percent quarter-on-quarter.
The fast-food business under Global Arches Development Corp., operator of McDonald’s Philippines, delivered a profit of P183 million at end-September, recovering from the P967-million net loss in the same period last year. Sales revenues rose by 25 percent year-on-year to P17.7 billion. INQ