AGI nets P13 billion from January to September

November 16, 2024 | 12:00am

MANILA, Philippines — Alliance Global Group Inc. (AGI) of tycoon Andrew Tan posted flat earnings in the nine months ending September, while revenues expanded on the back of resilient performance across its diverse business segments.

AGI’s attributable net profit from January to September was almost unchanged at P12.97 billion from P12.93 billion in the same period in 2023.

Net income dipped slightly by 0.5 percent to P20.05 billion from last year’s P20.14 billion.

Revenues of the conglomerate grew by 7.4 percent to P161.6 billion from P150.4 billion as a result of double-digit growth from real estate sales, hotel and quick-service restaurant operations.

During the third quarter alone, attributable profit rose by 14 percent year-on-year to P4.2 billion as revenues reached P54.1 billion.

“AGI’s healthy topline performance in the first three quarters of the year was largely driven by significant increases in residential sales in the real estate business, coupled with rising contribution from its hospitality segment and quick-service restaurants,” AGI president and CEO Kevin Tan said.

Tan said the growth was achieved despite challenges brought about by generally elevated inflation and weaker global economy.

Premier township developer Megaworld was the biggest contributor to the group’s performance during the nine-month period, posting a 14 percent hike in net income to P13.7 billion from P12 billion the year before.

Stronger real estate sales as well as the sustained improvement in the contribution from its hotel and mall operations boosted Megaworld’s revenues by 23 percent year-on-year to P59.8 billion.

Emperador, the biggest brandy company in the global market, booked an attributable profit of P4.8 billion during the three quarters as revenue stood at P43.2 billion.

AGI said Emperador’s brandy segment was affected by the general weakness in demand in key markets like Spain, Mexico and Philippines, with consumers shifting to value brands.

The scotch whisky segment, on the other hand, was weighed down by the tough trading situation in China and in the US, which impacted category sales in the Asia-Pacific and North American regions.