August 15, 2024 | 12:00am
MANILA, Philippines — Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, saw its profit dip by four percent in the first half despite achieving higher revenues.
AGI reported net profit to owners of P8.8 billion in the first semester from last year’s attributable profit of P9.2 billion.
Consolidated revenue for the period, meanwhile, rose by eight percent to P107.5 billion from P99.1 billion, following a resurgence in activities across all business segments in the second quarter.
“The Alliance Global Group mustered a strong recovery in the second quarter of the year despite the generally sluggish global economy, as well as the challenges brought about by elevated inflation, interest rates and an unstable currency,” AGI president and CEO Kevin Tan said.
AGI saw a sustained rise in contribution from its real estate and quick service restaurants businesses, underpinned by resilient consumer spending, during the second quarter.
The company also benefited from a sharp recovery in spirits demand in the global market, coupled with improved activities from its leisure and tourism arm after a sluggish start.
“Our performance mirrored the underlying strength of our brands and all our businesses as the group continued to invest in future capacity expansions and execute our strategies as planned,” Tan said.
“We also focused on implementing enhancements and innovations of our aspirational products and services to address changes in market preferences. We believe that we are in the best position to take advantage of emerging opportunities as the economy continues to recover,” he said.
Real estate giant Megaworld led the group’s first half performance with a 22-percent increase in revenue to P39.1 billion, fueled by the accelerated improvement in residential project completion.
Global brandy producer Emperador delivered a consolidated revenue of P28.6 billion and net income of P3.8 billion during the semester.
Travellers International, AGI’s leisure and tourism arm and owner of Newport World Resorts, posted a net income of P434 million on gross revenues of P20.1 billion in the first half following a significant improvement in overall performance in the second quarter.
Golden Arches Development Corp. also sustained healthy sales growth in the first semester with revenues rising by 14 percent to P23 billion due mainly to ongoing product enhancements and promotions.
The company managed to keep overall margins stable, prompting an 11- percent jump in attributable income to P1.1 billion despite mounting cost pressures.
As of end-June, McDonald’s Philippines had a total of 755 stores nationwide.
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