Alliance Global posts 17% income hike

Amid a harsh business environment, Alliance Global Group Inc. (AGI), the listed investment holding firm of tycoon Andrew Tan, reported a 17.1 percent increase in net income for the first nine months of the year to P4.1 billion.

In a statement issued yesterday, AGI said its consolidated revenues rose 12 percent to P22.1 billion from P19.7 billion a year earlier.

Providing the lift was AGI’s property unit Megaworld Corp., which posted a net profit of P2.86 billion, up 25 percent from the year earlier level on the back of a 24-percent growth in revenues.

Megaworld’s revenues reached P12.5 billion from P10.1 billion.

Of the total, P9.1 billion came from real estate sales while P1 billion came from rental income.

AGI’s food and beverage division chalked in a net profit of P1.11 billion, up 4.4 percent from P1.06 billion recorded last year.

Earnings of Emperador Distillers, Inc. (EDI), however, fell 34.8 percent to P623.7 million from P956.6 million a year earlier.

AGI’s quick service restaurant business and other investments account likewise reported a 45 percent decline in net earnings to P128.2 million from P232.6 million.

In the third quarter, net earnings of Golden Arches Development Corp., the local franchise holder of global fastfood giant McDonalds, plunged 72 percent to P59 million from P217 million despite a nine percent rise in revenues to P6 billion.

The drop in third quarter net income was due to higher expenses incurred with the opening of new stores and foreign exchange losses.

As of end-September this year, AGI had a consolidated cash level of P27.6 billion as against total debt of P11.44 billion.

AGI said its property development business will remain resilient while its consumer businesses will continue to experience a challenging business environment. – Zinnia B. Dela Peña