Alliance Global posts record P12.3-B earnings

MANILA, Philippines - Alliance Global Group Inc. (AGI), the holding firm for the business interests of tycoon Andrew Tan, posted record earnings of P12.3 billion in the nine months ending September this year, up 62.6 percent from the previous year-period and already exceeding the full 2010 level.

Last year, AGI reported a net income of P9.5 billion.

AGI attributed the strong performance to robust operating results of its real estate and food and beverage businesses. The acquisition of shares of a new subsidiary, Global Estate Resorts Inc. likewise contributed to AGI’s consolidated net income.

Excluding the P3.2-billion acquisition gain, AGI’s net earnings grew 31 percent to P9.9 billion or an increase of 83.8 percent year-on-year.

AGI said revenues jumped 52 percent to P49.2 billion largely due to a 51 percent rise in consumer products sales (P6.7 billion), 25 percent in real estate sales (P2.7 billion), and 71 percent in realized gross profit on prior years’ real estate sales (P772 million).

Property arm Megaworld Corp. posted net earnings of P6.65 billion in the first nine months of the year, 63 percent more than the P4.08 billion recorded in the same period in 2010. Total revenues climbed 46 percent to P22.96 billion.

Travellers International Hotel group, a joint venture between AGI and Genting Hong Kong Ltd., chalked in a net income of P4.2 billion, up 68 percent from P2.5 billion. Earnings before interest, tax and depreciation and amortization amounted to P6.5 billion while revenues increased to P20.8 billion from P11 billion.

Travellers operates Resorts World Manila, an integrated casino resort complex which opened in August 2009.

Revenues from food and beverage operations went up 89.2 percent due to strong demand for the distilled spirits products. Emperador Brandy and The Bar flavored alcoholic drinks surpassed 2010 annual sales. New The Bar variants - the pricey Citrus Tequila, the popular Strawberry Vodka and the pure Silver, which were launched in the market in April this year, May and November last year, respectively - provided incremental growth that pushed sales further.

Pik-Nik sales, on the other hand, rose 12 percent with its USA sales gaining eight percent while international sales outside of USA expanded 16 percent.

Revenues from the fastfood business (McDonalds) inched up eight percent. Product sales generated from company-operated restaurants, in particular, grew 10.2 percent while revenue from franchised restaurants increased 10.1 percent.

The growth came from the increase and improved performance of its store chain and business extensions (24-hour delivery service, drive-thru, dessert centers, midnight hours and breakfast daypart) and aggressive advertising/promotional campaigns to support McSaver Meals and P25 McSavers (sundae, floats, fries and Burger McDo).

Twenty-two new restaurants were opened from a year ago, bringing the total number of stores nationwide to 322 stores by end-September. These new stores contributed 4.1 percent to total systemwide sales.