Alliance Global posts P4.1B profit in H1, down 67%

Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) saw a 67% drop in its net income in the first six months of 2020 as strict lockdown to contain the spread of COVID-19 weighed on its businesses.

In a disclosure to the Philippine Stock Exchange, AGI reported a bottom line of P4.1 billion, lower than P12.5 billion net income posted in the same period last year.

“The country’s strict two-month lockdown weighed heavily on most of our domestic operations. We take comfort from the fact that we have managed to diversify our sources of income, either by type of products or by geographic contribution, and this has helped us mitigate the impact of this pandemic on our group performance,” AGI chief executive officer Kevin Tan said.

AGI’s consolidated revenues plummeted 26% to P61.4 billion from P82.8-billion year-on-year due to the “hurdles caused by the coronavirus pandemic that affected most of its businesses.”

The conglomerate has interests in real estate developments Megaworld Corporation; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; spirits manufacturing through Emperador Inc.; quick service restaurants through Golden Arches Development Corp. (GADC), popularly known as McDonald’s Philippines, which is a strategic partnership with the George Yang Group; and infrastructure developments through Infracorp Development Corp.

Megaworld registered a 33% decline in attributable net income to P5.4 billion from P8.1 billion a year earlier.

The property developer, however, managed to book a 10% growth in office rentals to P5.6 billion as it catered mostly to the more resilient business process outsourcing industry.

Emperador, the world’s biggest brandy producer and owner of the world’s fifth largest Scotch whisky manufacturer, recorded a 2% year-on-year improvement in attributable profit to P3.3 billion in the first half this year.

Travellers International, owner and operator of Resorts World Manila recorded a net loss of P3.7 billion in the first half this year, a reversal from its P845 million net income the year before.

The community quarantine also significantly affected GADC’s operations which saw its bottomline post a loss of P709 million in the first half this year, reversing the profit of P751 million the year before.

“This global health crisis has brought us new learnings. We have modified our product offerings and acquired new skills to adapt to the changes in consumer behavior. Likewise, our move to transform our operations under a digital strategy, an undertaking we have started only last year, has supported most of our businesses especially during the strictest period of the community quarantine,” Tan said. —KBK, GMA News