TAN-LED Alliance Global Group, Inc. (AGI) recorded net profits to owners of P2.6 billion in the first quarter, down 13% from P3 billion in the same time last year due to the impact of renewed pandemic constraints on its companies.
“Through the first two months of the year, the majority of our companies have already recovered, maintaining the momentum built during the holiday season,” AGI CEO Kevin Andrew L. Tan said in a statement on Thursday.
“However, the momentum has been briefly stalled as a consequence of new constraints introduced in response to the end-of-March increase in new cases,” Mr. Tan said.
The listed conglomerate recorded a 20% decline in net profit to P3.2 billion from P4 billion last year, although combined sales fell 16% to P31.8 billion from P38 billion.
“Fortunately, our overseas liquor activities continued to perform well, aided by the reopening of numerous economies around the world and the increasing traction of its products in the international market,” Mr. Tan said.
Emperador, Inc.’s net attributable profit increased 43 percent to P2.1 billion in the first quarter from P1.46 billion a year ago. Its top line increased 13% to P12.1 billion, which the company defined as “among its strongest performances to date” due to global revenues.
“It is worth noting that Emperador’s diversified whisky and brandy range continues to expand its foreign footprint — most notably in the Americas, the United Kingdom, and the rest of Europe, as well as Asia, most notably in China,” Alliance Global said.
Meanwhile, Megaworld Corp.’s net attributable profit fell 33% year on year to P2.36 billion from P3.51 billion. Without including comparable estimates, the firm stated that it represents a 4% increase over the previous year.
Megaworld’s topline also decreased by 33%, from P15.08 million to P10.11 million. Real estate revenue reached P5.9 billion due to increased project completion, reservation revenue exceeded P20.7 billion, and the company earned P3.1 billion in rental income throughout the year.
Travellers International Hotel Group, Inc., the owner and operator of Resorts World Manila, suffered a P1.1 billion net loss during the year, slightly above last year’s P1 billion loss. Gross sales decreased by 24% year on year to P5.2 billion, but AGI stated that they are up 13% from the previous quarter.
Travellers International’s gaming division reported gross revenues of P4.6 billion during the three-month stretch, while non-gaming revenues totaled P633 million. Meanwhile, its hotel activities saw an increase in occupancy to 65%.
McDonald’s Philippines developer Golden Arches Development Corp. (GADC) recorded a 32% fall in net attributable profits in the first quarter to P73 million from P108 million a year earlier. Without providing specific estimates, the firm stated that its EBITDA (earnings before income taxes, depletion, and amortization) increased by 30% year over year.
GADC is a long-term collaboration between AGI and the George Yang Group, which holds the exclusive franchise for McDonald’s restaurants in the Philippines.
It ended the quarter with 655 locations, down from 669 a year before, following the closure of 30 locations last year due to expired leases and questions over financial sustainability. This was only compensated by the opening of 16 additional supermarkets in the midst of the pandemic.
Alliance Global said that the pandemic taught the organization to be “unwaveringly inventive and imaginative in implementing and changing some of [their] recovery plans.”
“We are extremely hopeful for the next three quarters as we anticipate an aggressive vaccine deployment that will allow market operations to resume,” Mr. Tan said.