AGI Q1 income flat at P5.4 billion on forex losses, higher interest

ALLIANCE Global Group Inc. (AGI), the investment holding company of businessman Andrew L. Tan, said its net income for the first three months of the year was flat at P5.4 billion, dragged by foreign-exchange losses and higher interest charges.

Company revenue posted a slim increase. Net income attributable to owners stood at P3.5 billion, down 2 percent from P3.6 billion last year, the company said.

Revenues grew 5 percent to P35.3 billion, from last year’s P33.7 billion, on good performance of its units led by its property development and liquor units, while its gambling arm was down, still reeling from last year’s attack.

“Our operating performance in the first quarter this year remained stable, attributed to the hefty investments we continue to pour into our various businesses as part of our long-term growth strategy,” AGI President Kingson U. Sian said.

“As a group, we spent over P360 billion over the last five years for our domestic and international expansion projects. We have an investment commitment of another P80 billion to fund our capex for this year alone,” Sian added

Megaworld Corp. reported a net income of P3.15 billion for the period, an 11-percent rise from last year’s P2.83 billion.

The first-quarter earnings of unit Global-Estate Resorts Inc. grew 27 percent to P399 million, from P315 million last year, but revenues were flat at P1.66 billion.

Liquor unit Emperador Inc. said its income reached P1.66 billion for January to March, an increase of 11 percent from the previous year’s P1.49 billion.

Gambling arm Travellers International Hotel Group Inc., the operator of Resorts World Manila, said its net income dropped by more than a third to P444.04 million for the three-month period compared with last year’s P685.97 million.

Revenues reached P5.46 billion for the period, down 13 percent from last year’s P6.33 billion.

Travellers said it expects to enhance its operating performance with the partial launch last week of the Grand Wing under its third phase of expansion. Targeted for completion this year, the Grand Wing will have an additional 940 hotel rooms, coupled with an expanded gaming capacity and high-end retail space.

Golden Arches Development Corp. (GADC), which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported an income jump of 23 percent year-on-year to P329 million, as sales revenues continued to expand by 12 percent to P6.6 billion.

Same-store sales rose 6.6 percent. In the first quarter of 2018, GADC’s total store count stood at 572 throughout the country, compared with 566 stores in 2017.

Despite rising cost pressures, the company also managed to maintain its gross-profit margins at 23 percent while operating margins rose to 8.5 percent, amid continued operating efficiencies.

“All our businesses are also operationally geared, such that any improvement in our topline can be amplified in our bottom line. We endeavor to remain cost efficient to protect our margins despite bouts of inflationary pressures,” Sian said.

Turning Points 2018
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