Alliance Global profit hits record P6.1 billion

MANILA, Philippines - Alliance Global Group Inc.’s consolidated net earnings reached a record P6.1 billion last year, 19 percent higher than the P5 billion reported in 2007, the company said yesterday.

In a statement, AGGI said its net profit attributable to shareholders amounted to P3.9 billion compared with P3.2 billion the previous year.

AGGI said consolidated revenues grew 18 percent to P36.1 billion with property unit Megaworld Corp. contributing 48 percent of total.

The group’s consumer product division, composed of Emperador brandy and the McDonald’s quick-service restaurant brands, accounted for 39 percent of total revenues. The balance of 13 percent came from other investment sources.

As of end-December last year, AGGI had total cash and cash equivalents of P27.6 billion, up 14.3 percent from the year-ago level.

“With its strong capitalization and cash position, AGGI has the necessary resources to thrive in the challenging business environment and be at the forefront of new investment opportunities,” the company said.

Megaworld reported a 25-percent jump in net income to P3.8 billion on robust sales and improving leasing operations. Revenues hit P17.3 billion as against P14.6 billion a year earlier.

AGGI’s brandy and quick-service restaurant businesses registered combined revenues of P14.1 billion last year, down 2.8 percent from P14.5 billion.

AGGI said the performance of the group’s consumer business units will remain weak as the global economic recession continues to weigh on the economy.

The company has earmarked P20 billion this year for the continued development of its real estate projects which will create around 50,000 jobs.

An additional 100,000 square meters of BPO office space in five buildings in Eastwood City, Mckinley Hill and Newport City will come on stream this year. This would accommodate 14,000 jobs beginning this year until 2010.

AGGI is likewise hiring 3,500 new people through its subsidiary, Travellers International Hotel Group Inc., for two hotels it is opening this year – the 365-room Marriott Hotel and the all-suites Maxims Hotel.