Taal eruption, COVID-19 pandemic cause drop in Alliance Global Q1 net profit

ABS-CBN News

Posted at Jun 30 2020 03:13 PM

Kevin Tan Megaworld's Chief Strrategy Officer celebrates after receiving the award for Shopping Center of the Year for Megaworld Uptown Mall during the Philippine Retailers Association's (PRA) Outstanding Filipino Retailers Awards night held at the Makati Shangri La on June 20, 2019. Jonathan Cellona, ABS-CBN News/File

MANILA - Alliance Global Inc. said Tuesday said its net profit declined in the first quarter of 2020 due to the impact of the Taal Volcano eruption and the coronavirus pandemic. 

Net profit reached P4 billion for the first quarter of the year, down by 39 percent compared to P6.5 billion the previous year, AGI said in a disclosure to the stock exchange.

“We started 2020 with twin challenges, and these are changing the way we live and do business today,” said AGI chief executive officer Kevin Tan.

Its unit Megaworld, registered a 9 percent decline in attributable net income of P3.5 billion in the first quarter from P3.8 billion the previous year, it said.

Despite the decline, AGI believes that its business is "sound and sustainable" with focus on township developments and its foray into international market for its spirits business, it said.

Digital transformation initiatives also helped the firm adapt to the new normal.

"As such, we see a silver lining to this crisis. Our new learnings and our ability to adapt to emerging trends should make our organization better equipped and even stronger beyond this crisis,” Tan said.

The Andrew Tan-led conglomerate has interests in real estate, leisure, entertainment, hospitality, spirits manufacturing, quick service restaurants and infrastructure.