Alliance Global earns 21% more in Q1

MANILA, Philippines — Alliance Global Group Inc. (AGI), the listed holding company of tycoon Andrew Tan, grew its first quarter net income by 21 percent to P4.4 billion.

Revenue grew 19 percent to P41 billion as AGI’s township development business and hotel operations through Megaworld Corp., liquor business through Emperador Inc. and quick service restaurants through Golden Arches Development Corp. performed well.

“Our much-improved performance is a testament to our strong brand equity across all our business segments.  We will continue to offer our premium products and excellent services to the market as we remain optimistic of the opportunities that lie ahead,” Tan said.

“We are mindful of the challenges in the external environment, but we will strive to work harder to sustain such good results,” Tan said.

Megaworld, the country’s largest developer of integrated urban townships, reported a 16 percent growth in net income to P3.8 billion as consolidated revenue rose 15 percent to P14.9 billion, on strong rental income.

Golden Arches Development Corp., which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported a net income of P383 million, up 16 percent.

It also reported a 13 percent year-on-year increase in sales revenue to P7.5 billion.

GADC’s total number of stores  reached 633 by the end of the first quarter, reflecting an additional one store per week from the 620 stores in 2018. 

Likewise, Emperador, the world’s biggest brandy producer and owner of the world’s fifth largest Scotch, reported an attributable net income of P1.7 billion or an increase of 10 percent year-on-year. This was on the back of consolidated revenue of P11 billion, up 13 percent.

Gross profit, meanwhile, grew 10 percent to P3.7 billion with increasing contribution from its premium Scotch whisky and Spanish brandy products. 

During the company’s annual stockholders meeting yesterday, Emperador said its different segments continued to perform well.

The whisky segment, under Whyte and Mackay, continues to enjoy strong sales driven by its single malt brands The Dalmore, Jura, Tamnavulin and Fettercairn, said Emperador president Winston Co.

This is in addition to the blended whisky brands Whyte & Mackay and Shackleton.

Under the brandy segment, Fundador and Tres Cepas are also now among the fastest-selling foreign brandies in the country.

Co said Emperador is implementing a major premiumization strategy in the Philippine spirits market.

“As your life changes, your lifestyle changes as well,” Co said, noting that many drinkers are now looking for better quality products.

Kendrick Tan, executive director of Emperador said: “We can stand up in terms of quality with the world’s best.”