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AGI net profit jumped 33% in Q1 Strong sales in beverage, food units
By Doris Dumlao
Philippine Daily Inquirer Friday, May 22, 2009

MANILA, Philippines—Property tycoon Andrew Tan’s holding firm Alliance Global Group Inc. reported a 33-percent growth in consolidated net income for the first quarter to P1.97 billion from a year ago, as the strong growth of its food and beverage businesses took up the slack in real estate sales.
In a disclosure to the Philippine Stock Exchange yesterday, AGI also reported that net income attributable to shareholders rose 51 percent to P1.37 billion.

Flagship property arm Megaworld Corp. closed the first quarter with P1.02 billion in net income, net of minority interest. It contributed P482 million to equity holders of AGI during the quarter, slightly higher than the P469 million in the same period in 2008.

Aside from real estate development through Megaworld, AGI also has interests in consumer brand food and beverage business through Emperador Brandy and McDonald’s fast-food chain.

Consolidated revenues during the quarter rose 6.0 percent to P8.86 billion from last year, half of which came from the real estate development business. The consumer brand food and beverage business contributed 41 percent, while the balance came from interest and other income.

Given the current difficult operating environment, real estate revenues were down about 5.0 percent to P4.45 billion from P4.67 billion last year. The consumer brand food and beverage business, however, registered total revenues of P3.63 billion, up 6.0 percent from P3.43 billion in the previous year.

“Even in these economically challenging times, Alliance Global remains steadfast in its commitment to deliver quality products and services that best meet the needs of its customers,” AGl president Kingson Sian said in a statement.

“The company, recognizing the resilience of the Philippines, will continue to explore investments in key, high-growth industries in the country, particularly in the tourism sector.”