Andrew Tan's Alliance Global posts flat H1 profit
MANILA, Philippines – Andrew Tan's Alliance Global Group Inc. (AGI) posted flat earnings in the first half of the year, only up 1.2 percent from the same period last year.
In a disclosure to the stock exchange, AGI said its consolidated net profit for the first half inched up to P11.37 billion from P11.24 billion a year ago.
Revenues for the first half of the year fell 2 percent to P59.6 billion from P60.8 billion from a year ago.
Two of its four major business segments performed well in the first half, with Megaworld posting a record high net profit of P16.44 billion.
The record earnings included an P11.69 billion non?recurring gain from acquisition and sale of shares in subsidiaries and in an associate for the first half of 2014.
Without these one-time gains, net profit jumped 12 percent to P4.75 billion from the P4.23 billion a year ago.
Megaworld saw strong property sales in its projects and higher leasing income from offices and retail, boosting revenues from recurring operations, including those from GERI this year, to P20.26 billion from the P17.28 billion posted in the same period in 2013.
AGI unit Travellers International, which operates Resorts World Manila, also posted a strong net profit of P2.88 billion for the first half of the year, up 25 percent from the P2.31 billion it reported a year ago on the back of its cost management initiatives.
On the other hand, Emperador and Golden Arches Development Corporation (GADC), which holds the Philippine franchise for McDonald's, posted lower profits for the first half of the year.
Emperador posted a net profit of P3.06 billion in the first half of 2014 compared to the P3.17 billion for the same period last year on lower sales.
GADC ended the first half with higher revenues of P8.98 billion, up 19.1 percent from P7.54 billion for the same period last year driven by the opening of 47 new restaurants, introduction of new products, and aggressive advertising and promotional campaigns.
However, higher sales cost, inventory cost and services cost due to higher prices of imported raw materials as well as crew labor costs and transportation costs pulled down GADC net profit to P322 million in the first half of 2013 from P380 million a year ago.