News and Press Release > AGI posts Q2 profit of P6.6-B, brings 1H earnings to P12-B
Press Release | Alliance Global Group, Inc. | August 12, 2022

AGI posts Q2 profit of P6.6-B, brings 1H earnings to P12-B

Alliance Global Group, Inc. (AGI), the holding company of tycoon Dr. Andrew L. Tan, has sustained its strong performance in the second quarter of 2022 with a 24% quarter-on-quarter (QoQ) jump in net income to P6.6-billion as consolidated revenues grew 20% QoQ to P45.1-billion.  

Net income to owners in the same quarter amounted to P4.4-billion, 12% higher QoQ.

For the first half of 2022, consolidated revenues rose by 16% year-on-year (YoY) to P82.6-billion, while net income fell by 6% YoY to P12.0-billion. Attributable profit amounted to P8.2-billion, indicating a decline of 3% YoY.

These figures in the first half of 2021 included a hefty one-time gain of P5.4-billion, booked mainly by AGI’s entertainment and leisure unit.  Excluding such one-off item, AGI showed a normalized growth in revenues of 26% YoY, an increase in net income of 63%, and a 41% improvement in attributable profit – indicating a solid growth in overall operations.   

“AGI’s strong interim performance mirrors the quarterly rise in economic activity, helped by pent-up consumer spending as mobility continues to improve. This has been felt across all our business segments which have performed on par, if not ahead, of their pre-pandemic levels,” says Kevin L. Tan, chief executive officer, AGI.  

The Andrew Tan conglomerate has varied interests spanning real estate developments through property giant Megaworld Corporation; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; spirits manufacturing through Emperador Inc.; quick service restaurants through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines, which is a strategic partnership with the George Yang Group; and infrastructure developments through Infracorp.

“While we continue to face a number of challenges moving forward, such as higher input costs, supply chain issues, volatile foreign exchange rate, and rising interest rates, we believe our focused strategies, creativity of offerings, and strong market positioning will enable us to maintain our strong footing in this highly competitive market and sustain our recovery,” adds Tan.

Megaworld, the country’s premier township developer, continued to benefit from the resurgence in economic activity. This brought its consolidated revenues higher by 9% QoQ and 17% YoY to P14.3-billion in the second quarter of 2022, while boosting its topline in the first half by 23% YoY to P27.5-billion.  The company continued to register better project completion amid sustained construction activity to bring its real estate sales in the first half to P17-billion, up 26% YoY.  Megaworld Premier Offices also posted a 15% increase in office rental income to P6.0-billion, helped by improving net take up of office spaces with the return-to-office order on BPO sector employees to maintain their incentives.  The higher mobility and improving consumer confidence also bolstered revenues of the Megaworld Lifestyle Malls by 41% YoY to P1.5-billion.  Megaworld Hotels & Resorts also reported a 49% rise in revenues to P1.1-billion as domestic tourism returns with increased staycation activities.  In all, Megaworld’s net income in the first half stood at P5.9-billion, reflecting an 18% improvement from the year before.

Emperador, the biggest global brandy company and owner of the world’s fifth largest Scotch whisky manufacturer, registered a sharp 27% QoQ and 19% YoY rise in consolidated revenues in the second quarter of 2022 to P15.7-billion.  Driving the strong growth was the sustained brisk sales of its whisky and premium brandy brands in the international market and in the Philippines, which was helped further by the overall pick up in economic activity.  This brought Emperador revenues in the first half of 2022 higher by 11% to P28.1-billion from P25.3-billion for the same period a year ago.  The company’s strong performance, however, was met by some cost challenges brought about by the pandemic-induced logistics problems and the ongoing Russia-Ukraine conflict.  Despite this, the country’s fastest-growing spirits company still managed to post another record performance in the second quarter of this year with net income rising by 50% QoQ to P3.1-billion, bringing its first half profit 3% higher to P5.2-billion from P5.1-billion the year before.  
GADC, meanwhile, maintained its growth trajectory in sales when it posted total revenues of P8.2-billion in the second quarter. This reflected an increase of 14% QoQ and 34% YoY, bringing its first half tally 31% higher to P15.4-billion from P11.8-billion the year before.  The country’s most dynamic quick service restaurant operator has quickly adapted to the fast-evolving consumer appetite and increased competition in the sector through its drive-thru activities and delivery services, even with the sustained improvement in dine-in operations.  Despite increased cost pressures, McDonald’s Philippines has managed to enjoy improved margins across most metrics.  It almost doubled its net income in the second quarter this year to P510-million, bringing its first half total to P768-million, reflecting a 15-fold increase from its level the year before.  GADC ended the period with 677 stores nationwide.

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