ANDREW L. Tan-led holding company Alliance Global Group, Inc. (AGI) saw a 10% decrease in its first-quarter attributable net income to P4.2 billion from P4.7 billion last year due to higher expenses.
“Higher input costs, marketing expenses, and interest charges, as well as unrealized foreign exchange losses capped profitability,” AGI said in a stock exchange disclosure on Wednesday.
AGI’s first-quarter revenues rose by 1% to P50.6 billion from P50.3 billion last year.
Megaworld Corp. took up 37% of revenue, followed by Emperador, Inc. at 26%, Golden Arches Development Corp. (GADC) at 23%, and Travellers International Hotel Group, Inc. at 14%.
“First-quarter results remained driven by the surge in real estate sales, and healthy contribution from quick service restaurants and tourism-related businesses which benefitted from resilient discretionary spending,” AGI said.
AGI’s real estate arm Megaworld Corp. saw an 8% increase in its first-quarter attributable net income to P4.4 billion as revenue climbed by 16% to P18.9 billion.
“Residential segment continued to benefit from sustained housing demand and higher project completion due to increased construction activity,” AGI said.
Liquor manufacturer Emperador saw a 25% drop in its attributable net income to P1.7 billion. Revenue fell by 16% to P13.1 billion.
“Brandy sales were weighed down by continued shift to value brands amid prevailing high domestic inflation. Whisky sales were affected by changes in sales mix as global demand for spirits turned soft,” AGI said.
GADC, the master franchise holder of fast food giant McDonald’s in the Philippines, saw a 19% increase in its attributable net income to P0.5 billion. Systemwide-sales rose by 13% to P19.5 billion.
“Sustained improvement in system-wide sales supported by continued product promotions, expanded store count and resilient discretionary spending,” AGI said.
Meanwhile, Newport World Resorts owner and operator Travellers International saw a 97% drop in its net income to P0.1 billion as gross revenue fell by 13% to P9.2 billion.
“AGI maintains its optimistic outlook for the rest of the year, supported by its sound business strategies and superior product/service offerings,” AGI said.
On Wednesday, AGI shares improved by 1.25% or 12 centavos to P9.70 per share. — Revin Mikhael D. Ochave
