Condo sales lifted AGI’s H1 earnings

Taipan Andrew Tan-led Alliance Global Group Inc. (AGI) grew its core net income in the first half by 22 percent year on year to P5.73 billion, led by a double-digit expansion in earnings by real estate unit Megaworld Corp.

Megaworld contributed around 42 percent to AGI’s net income and about 30 percent to groupwide revenue. Megaworld’s core net income amounted to P3.69 billion, up by 15 percent from the same period last year.

Including minority interest, AGI’s six-month core net income amounted to P8.41 billion, up by 33 percent year on year. Taken out of the comparative figure in 2011 in determining AGI’s core income was a P3.13 billion non-recurring gain due to the acquisition of Global-Estate Resorts in 2011.

AGI’s consolidated revenues went up by 69 percent year on year to P51.07 billion in the first semester with the consolidation of leisure estate unit Travellers International Hotel Group Inc. this year.

AGI chief finance officer Dina Inting added that the firm expects its Emperador brandy unit “to contribute significantly to our group’s earnings this year.”

The official noted that Emperador was recently named the best-selling brandy in the world in terms of volume by UK- based Drink International Magazine.

Megaworld reported total revenues of P15.43 billion in the first half, up 12 percent year on year. Its performance was backed by residential revenues booked out of previously sold units from its projects in Newport City, McKinley West, McKinley Hill and Eastwood City. Likewise cited as a big contributor was strong leasing income from business process outsourcing and retail portfolio.

AGI also reported that revenues and profits from the rest of AGI’s portfolio of businesses had grown in line with targets, without citing specific figures.

Apart from real estate, AGI has interests in industries such as food and beverage, quick service restaurants and integrated tourism estates.

Food and beverage arm Emperador Distillers Inc. produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.

The company recently launched two new product variants of The Bar, which are The Bar Citrus Tequila and The Bar Silver Vodka.