Alliance Global net income down 67% from Jan.-Sept

Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) saw a high double-digit decline in its bottom line during the first nine months of 2020 as the economic downturn resulting from the COVID-19 pandemic dragged its businesses.

In a disclosure to the Philippine Stock Exchange on Friday, AGI reported its net income in the January to September period stood at P6.4 billion, down 67% from P19.3 billion year-on-year.

Consolidated revenues also fell by 28% to P91.8 billion from P127 billion a year earlier.

In the third quarter alone, however, earnings improved to P2.2 billion from only P156 million recorded in the second quarter.

The July to September improvement, AGI said, was achieved as consolidated revenues expanded by 30% quarter-on-quarter to P30.4-billion, “helped by the gradual easing of community quarantines throughout the country and the further reopening of the economy.”

“We are very encouraged by the sharp improvement in earnings across all our business segments during the third quarter as the economy gets a reboot with the further easing of the quarantine restrictions. Our interim performance also validated the soundness of our diversification strategy as evidenced by the strong results delivered by our international liquor operations even amidst the global pandemic,” said Kevin Tan, AGI’s chief executive officer.

AGI has various interests in 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 Development Corporation. 

“We are optimistic that we can maintain this sequential improvement following the trajectory of the economy which we expect to slowly improve.  Meanwhile, we continue to help rebuild consumer confidence by assuring our stakeholders of the safe live, work, and play environment in our townships,” said Tan.

“In support of this objective, we have advanced our implementation of a digitalization strategy – through cashless and contactless transactions, E-concierge for our hotel operations, customer service, account management and efficient delivery applications – in order to hasten the pace of our transition to this new normal,” he added.—AOL, GMA News