MANILA, Philippines – A slowdown in its liquor and fastfood businesses pulled down the six-month profit of Alliance Global Group Inc. (AGI) of tycoon Andrew L. Tan by nearly a 10th.
In a statement, AGI said its net profit in the first half of the year tumbled nine percent to P7.49 billion from P8.24 billion a year ago.
Property giant Megaworld Corp. remained the group’s top income contributor, accounting for 44 percent of AGI’s net income and 34 percent of total revenues.
Megaworld posted a record net profit of P16.44 billion in the first semester, which included P11.69-billion non-recurring gains from acquisition and sale of shares in subsidiaries and in an associate.
Minus these one-time gains, Megaworld’s net profit still grew 12.24 percent to P4.75 billion in the first six months of the year from P4.23 billion a year ago.
Liquor firm Emperador Inc. was AGI’s second biggest income contributor for the first six months, but the unit’s net profit dropped to P3.06 billion from P3.17 billion during the same period last year on the back of lower revenues.
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Emperador’s revenues declined to P13.25 billion this year as compared to P13.99 billion a year ago. The liquor unit contributed 27 percent to AGI’s net profit and 22 percent to consolidated revenues in the first half.
Meanwhile, cost management initiatives buoyed Travellers International Hotel Group Inc.’s first half earnings 24.73 percent to P2.88 billion from P2.31 billion last year. Travellers operates Resorts World Manila across Terminal 3 of the Ninoy Aquino International Airport in Pasay City.
AGI said Travellers’ gross gaming revenues stood at P13.58 billion during the period while hotel occupancy rates remained solid at a minimum of 87 percent in all of its three hotels, namely Maxims, Marriott and Remington.
Travellers contributed 26 percent and 25 percent to total consolidated revenues and net profit of AGI, respectively.
McDonald’s franchiser Golden Arches Development Corp. also contributed a net profit of P322 million in the first half, lower than the P380 million it poured in a year ago.
Golden Arches, however, ended the first half with total revenues of P8.98 billion, up 19.1 percent from P7.54 billion for the same period last year due primarily to the opening of 47 new restaurants and re-imaging of 33 existing restaurants, expansion of business extensions, introduction of new products, and aggressive advertising.
Golden Arches contributed 15 percent and three percent to consolidated revenues and net profit of AGI and subsidiaries, respectively.