Alliance Global triples net income in H1 to P12.8B

Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) tripled its earnings in the first six months of 2021 on the back of strong revenue streams across its businesses as the economy gradually reopened during the period.

In a disclosure to the Philippine Stock Exchange on Thursday, AGI reported a net income of P12.8 billion in the January to June period, a three-fold increase from P4.1 billion booked in the same period last year.

The company said the robust financial performance was boosted by its diversified revenue streams that helped mitigate the impact of the strict lockdowns that were re-imposed in the National Capital Region and other parts of the country.

The Tan-led holding firm also saw its consolidated revenues rise by 16% to P71 billion during the first semester of 2021 from P61.4 billion a year earlier.

“All of our business segments here and abroad managed to sustain the quarterly growth trajectory we have been experiencing since the third quarter of 2020, indicating the extent of pent-up consumer spending across the globe, capped only by the prevailing restrictions in those areas to curb the rise of the COVID-19 Delta variant,” said Kevin Tan, AGI chief executive officer.

“We are also relentless in our efforts to fully recover from this pandemic-induced business slump as soon as we can, through our superior brands and distribution system, more innovative products and services, strong relationships with our partners, cost-effective operations, and our efficient digitalization strategy throughout all our business segments,” Tan said.

AGI 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 Development Corporation. 

In particular, Megaworld’s revenues and earnings stood at P22.2 billion and P5 billion, respectively, reflecting a 7% dip from their levels in prior year.

Brandy and distilled spirits maker Emperador saw its first half profit grow 53% to P5.1 billion on the back of 18% growth in revenues to P25.3-billion.

Travellers International, the owner and operator of Resorts World Manila (RWM), posted a first half profit of P2.6-billion, reflecting a turnaround from a net loss of P3.7 billion a year earlier.

Despite the prevailing quarantine restrictions, GADC recorded first half revenues of P11.8 billion, up 21% year-on-year, bringing its net income to P49 million, a reversal from a net loss of P709 million last year.—AOL, GMA News