Alliance Global Posts PhP4.91B Profit in 1Q 2013

AGIManila—(PHStocks)—The Andrew Tan-led Alliance Global Group Inc. (PSE: AGI) reported strong results for the first three months of 2013, with its net profit growing to PhP4.91 billion, up 18 percent from PhP4.15 billion a year ago.

Consolidated revenues also grew to PhP30.39 billion in the first three months of 2013, a 25 percent increase from PhP24.38 billion.

“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to BPO and tourism—all growth drivers of the Philippine economy. These businesses will hit double-digit growth in revenues and net profits,” said Dr. Andrew Tan, chairman of AGI.

Core net income attributable to AGI shareholders jumped to PhP3.58 billion, up 21 percent from
PhP2.96 billion in the same period last year.

AGI’s growth was led by its main subsidiaries Megaworld Corporation (PSE: MEG), Emperador Distillers Inc. and Travellers International Hotel Group, Inc., which collectively contributed 84 percent of the conglomerate’s net profit.

With total assets of around PhP281 billion, AGI is in a strong position to pursue its goals as it continues to enhance its operating efficiency and profitability. AGI’s total cash and cash resources at the end of the period amounted to PhP67.9 billion.

Real estate arm Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to its total revenue.

Megaworld reported total revenues of PhP8.1 billion in the first three months of 2013, up 16 percent year on year from PhP7 billion. Its net profit, on the other hand, amounted to PhP1.8 billion, up from PhP1.6 billion, a 15 percent increase year on year. Megaworld, together with its subsidiaries, sold over PhP18 billion in reservation sales for the first quarter of 2013, an increase from PhP14 billion in the same period last year.

Megaworld’s performance as the No.1 residential condominium developer was backed by strong sales from the residential projects in its townships, particularly Newport City, McKinley West, McKinley Hill and Eastwood City, as well as strong leasing income from its BPO and retail portfolio.

The country’s largest residential condominium developer and BPO office developer and landlord, Megaworld pioneered live-work-play-learn townships, complete and integrated developments which have mushroomed throughout Metro Manila and city centers such as Iloilo City and Mactan, Cebu.

Megaworld is also recognized as the leader in office development and is currently the largest BPO office landlord. By the end of 2013, the company expects to have more than 500,000 square meters of office space in its portfolio.

Revenues and profits from the rest of AGI’s portfolio of businesses also grew in line with targets. 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 reported an increase of total revenues to PhP6.5 billion, up 17 percent from PhP5.5 billion. Net profit jumped 40 percent to PhP1.4 billion from PhP1 billion. The company produces Emperador Gold and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar. It recently introduced Emperador Deluxe, which is bottled in Spain.

Emperador’s growth came from increased sales of the world’s best-selling brandy, Emperador, which sold over 31 million cases last year, mostly under the product Emperador Light.

Travellers posted total revenues of PhP10.5 billion in the first three months, up 47 percent from PhP7.1 billion. Its net profit grew to PhP995 million from PhP854 million, up 16 percent year on year. Travellers operates Resorts World Manila, the first integrated tourism estate in the country.

Resorts World Manila is located in Newport City, set across from Terminal 3 of the Ninoy Aquino International Airport in Pasay City.

The other subsidiaries of AGI, led primarily by Global-Estate Resorts Inc. (PSE: GERI) and Golden Arches Development Corporation (GADC), have registered strong earnings and positive growth, underscoring their strengths in their respective sectors.

GADC operates the quick service restaurant business under the McDonald’s brand. From 375 stores in 2012, GADC is planning to expand to 500 stores nationwide by 2015.

GERI, for its part, develops integrated tourism estates in strategically located tourism hot spots such as Boracay, Tagaytay, and Batangas. It is well-positioned to promote the country on a global scale and drive the contribution of tourism to the growth of the economy.

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