AGI's Q1 income up 67% to P5.4-B
Buoyed by the overall further reopening of the economy, the Andrew Tan-led Alliance Global Group, Inc. (AGI) chalked up a net profit of P5.4-billion in the first quarter of 2022, reflecting a significant 67% increase from P3.2-billion the year before.
Net income to owners, likewise, registered a 52% improvement to P3.9-billion from its year ago level of P2.6-billion.
Consolidated revenues grew by 18% to P37.5-billion from last year’s P31.8-billion.
“AGI continued with its impressive growth momentum in the first quarter of the year as the overall improvement in mobility has allowed all our businesses to perform further closer to pre-pandemic levels – boosting revenues of our lifestyle malls, hotels and our quick service restaurants. This upturn is reflective of the underlying strength in domestic economy, just waiting to be unleashed,” says Kevin L. Tan, chief executive officer, AGI.
The Andrew Tan-led conglomerate has varied interests spanning real estate developments through property giant Megaworld Corporation; spirits manufacturing through Emperador Inc.; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; quick service restaurants through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines, in strategic partnership with the George Yang Group; and infrastructure development through Infracorp.
In the first quarter of 2022, Megaworld, the country’s pioneer in township developments and the largest office landlord, recorded consolidated revenues of P13.1-billion, as its key business units posted notable year-on-year improvements. Its real estate sales grew at a robust rate of 36% to P8.1-billion on the back of increased project completion, while reservation sales went up 12% to P23.2-billion. Rentals stood at P3.7bn, with sharper year-on-year rise in the contribution from its office segment (+16%) on account of higher occupancy rate of 91%, while mall revenues jumped by 40%, buoyed by pent up consumer spending. Likewise, hotel revenues shot up by 50% with the rebound in tourism-related activities. Attributable net income reached P3.1-billion, a 30% improvement from the year before.
Emperador recorded consolidated revenues of P12.3-billion, registering a modest 2% year-on-year growth, even amid renewed quarantine restrictions across the globe due to the Omicron variant, coupled with challenges in the supply chain. This indicates the resilience of global demand for the Group’s premium liquor brands, primarily its whisky products which continued to post a robust sales growth of 20% year-on-year during the quarter. Its brandy segment, however, was impacted by rising costs, capping overall profit margins. Attributable profit stood at P2.1-billion during the same period.
GADC’s attributable net income more than trebled to P258-million in the first quarter this year on consolidated revenues of P7.2-billion, indicating a 27% year-on-year expansion. Gross profit also rose 18% year-on-year, despite pressures brought about by rising cost of inventories. The company ended the quarter with 675 McDonald’s stores. GADC, led by its Chairman and Founder George Yang, is a long-term partnership with AGI and holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand.
“Armed with the learnings we have acquired in the past couple of years, we target to achieve our pre-pandemic performance this year. We remain confident and optimistic of our growth prospects even in the face of current domestic and global headwinds,” continues Tan.