Alliance Global Group’s profit soars amid broad recovery

Alliance Global Group Inc. (AGI), the conglomerate led by tycoon Andrew Tan, reported a robust financial recovery in the first half of 2024, driven by strong performances across all its business segments.

AGI’s consolidated revenue reached ₱107.5 billion, marking an 8% increase from ₱99.1 billion during the same period last year. Net profit to owners surged to ₱8.8 billion, with pre-minority income standing at ₱13.8 billion.

In the second quarter alone, AGI saw its revenue rise to ₱56.8 billion, a 16% year-on-year increase, as the company reaped the benefits of resilient consumer spending in its real estate and quick service restaurant businesses.

The company’s net income for the quarter climbed to ₱7.2 billion, with an attributable profit of ₱4.6 billion.

“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,” said Kevin L. Tan, President and CEO of AGI.

“Our performance mirrored the underlying strength of our brands and all our businesses.”

Megaworld Leads with 22% Revenue Growth

Megaworld Corporation, AGI’s flagship real estate arm, posted a 22% revenue growth in the first half of the year, amounting to ₱39.1 billion, up from ₱32.0 billion the previous year.

The rise was fueled by a 30% increase in real estate sales, reaching ₱24.8 billion, as residential project completions accelerated. Sales reservations climbed to ₱68.5 billion, bringing Megaworld closer to its full-year target of ₱145 billion.

Megaworld’s commercial leasing operations also thrived, with Megaworld Lifestyle Malls and Megaworld Premier Offices contributing ₱3.0 billion and ₱6.3 billion in revenue, respectively.

The company’s hotel and resort segment, Megaworld Hotels & Resorts, recorded a 38% year-on-year increase in revenue, totaling ₱2.4 billion, buoyed by higher occupancy rates and increased MICE (Meetings, Incentives, Conferences, and Exhibitions) activities.

Emperador Sees Global Spirits Demand Surge

Emperador Inc., AGI’s global brandy and whisky producer, experienced a significant recovery in the second quarter, with revenue climbing by 18% quarter-on-quarter to ₱15.5 billion.

The growth was largely driven by a 27% increase in whisky sales and a 12% rise in brandy sales, particularly in the Asia Pacific region, Latin America, and the Travel Retail sector.

Emperador’s attributable net income for the quarter rose by 19% to ₱2.1 billion, despite the pressures of higher input costs and marketing expenses.

Travellers International Boosts Leisure and Tourism

AGI’s leisure and tourism unit, Travellers International Hotel Group Inc., which operates Newport World Resorts, saw a remarkable 17% quarter-on-quarter revenue growth, totaling ₱10.9 billion in the second quarter. This performance was driven by a 20% increase in gross gaming revenues and sustained growth in the non-gaming segment, which includes hotel and retail operations. The average daily footfall at the NWR complex hit a record high of 44,000 visitors, pushing the company’s attributable income for the quarter to ₱423 million.

Golden Arches Development Sustains Growth

Golden Arches Development Corp. (GADC), the operator of McDonald’s Philippines, continued its steady performance with a 14% year-on-year revenue increase, reaching ₱23.0 billion in the first half of 2024.

The growth was attributed to ongoing product enhancements and promotions, as well as the expansion of its store network, now numbering 755 nationwide.

Despite rising cost pressures, GADC maintained stable margins, resulting in an 11% year-on-year increase in attributable income, which totaled ₱1.1 billion.