AGI profit up 33% in 1st 4 months

MANILA, Philippines — Alliance Global Group Inc. (AGI), the listed conglomerate of Andrew Tan, reported a net profit of P7.1 billion in the first quarter, up 33 percent from the P5.4 billion recorded a year ago.

This was on the back of consolidated revenues of P50.3 billion, up 34 percent from last year’s P37.5 billion as all major business segments delivered strong results.

Net income attributable to parent reached P4.7 billion, up by 20 percent to P4.7 billion from its year ago level of P3.9 billion.

Kevin Tan, CEO of Alliance Global, said the different businesses continued to take advantage of the resilient consumer demand and economic activity which provided the boost to our lifestyle malls, hotels, integrated resort operations, quick service restaurants, real estate sales and office rentals.

“Meanwhile, our international spirits business continued to benefit from the increasing popularity of our premium brands across the globe and the resurgence in travel retail,” Tan said.

The conglomerate has different businesses, including real estate through Megaworld Corp.; spirits manufacturing through Emperador Inc.; leisure, entertainment and hospitality through Travellers International Hotel Group Inc.; quick service restaurants through Golden Arches Development Corp., and infrastructure development through Infracorp.

“As a premium lifestyle conglomerate, we believe that our strength lies in our brands which we continue to improve and develop. Our agility and versatility allowed us to quickly adapt to the ever-changing demands of the market. With this, we maintain our optimistic view of our growth prospects moving forward,” Tan said.

Earlier yesterday, during its annual stockholders meeting, liquor arm Emperador said it would increase capacity as it focused on strengthening its brandy and whisky business in the Philippines and abroad.

Emperador reported a 26 percent growth in consolidated revenues to P15.6 billion, driven by the resurgence in domestic demand and improving global spirits sales. Its brandy segment chalked up a 28 percent growth increase in revenues during the quarter, supported by improving on-trade sales and modest price adjustments.

Its whisky business also continued to grow its sales sharply by 24 percent year-on-year due to growing popularity of its premium single malt brands in the global market, particularly in Asia and North America. This has also helped lift the group’s overall margins to 33 percent at the gross profit level from 32 percent the year before. Attributable profit stood at P2.3-billion, a 10 percent improvement from a year ago, Alliance Global said in its report.

Emperador president Winston Co. said the company is increasing its capacity by upgrading its facilities and building a new distillery for the Dalmore to meet the company’s 10 to 12 year projection.