AGI RIDES OUT INFLATION AS PROFIT JUMPS 12%

Billionaire Andrew Tan’s Alliance Global Group Inc. (AGI) said property and restaurant contributions helped net income during the first semester climb 12 percent to P9.2 billion.

The property, casino, liquor and fast-food conglomerate’s earnings from January to June this year likewise surpassed the 2019 prepandemic figure by 10.8 percent.

“The Alliance Global Group delivered another strong interim financial and operating performance even amidst the global and local economic challenges that affected all businesses during the period and the stiffer competition in the marketplace,” Kevin Tan, CEO of AGI, said in a statement on Monday.

“It also helped that consumer spending has been healthy while mobility continues to improve,” he added.

Total revenues during the first six months of the year rose 20 percent to nearly 100 billion versus the same period in 2022. For the second quarter alone, net income rose 5 percent to P4.6 billion while revenues added 8 percent to P48.8 billion over the same period last year.

AGI owns property giant Megaworld Corp., liquor company Emperador Inc., casino operator Travellers International Hotel Group Inc. and Golden Arches Development Corp., the operator of McDonald’s Philippines.

Last June, the holding company bought out strategic partner Genting Hong Kong in a deal that gave it full ownership of Travellers.

Moreover, Megaworld saw profits during the period jump 34 percent to P7.9 billion while revenues expanded by 17 percent to P32 billion.

Golden Arches, a venture with fast-food tycoon George Yang, saw net income during the six-month period increase by 27 percent to P972 million despite cost pressures. Sales reached P20.2 billion, up 31 percent.

Emperador’s net income slipped 9 percent to P4.7 billion as the company cited rising selling and operating costs. Revenues hit P31.1 billion, up 11 percent.

“While there are persistent inflationary pressures, we have remained steadfast in achieving operating efficiencies across all business units. We have also maintained our financial prudence even as we continue with our aggressive expansion plans both here and abroad,” Tan said.

“The group is optimistic that we can weather this through as we remain focused in achieving our growth goals,” he added.