Alliance Global Group, Inc. (AGI) clocked in a net income of P17.3-billion in the first nine months of 2021, reflecting a hefty 173% increase from P6.4-billion during the same period last year. The holding company of tycoon Dr. Andrew L. Tan attributed its creditable performance mainly from its diversified operations, strong brand equity and ongoing cost management efforts, factors that helped cushion the impact of the restrictions brought about by the global pandemic.

Consolidated revenues rose by 20% to P110-billion during the nine-month period compared to P91.8-billion the year before. Net income attributable to owners more than doubled, rising 106% to P12.0-billion from P5.8-billion recorded for the same period last year.

For the third quarter of the year, net income to owners also surged by 73% year-on-year (YoY) to P3.5-billion as consolidated revenues went up by 28% year-on-year to P38.9-billion.

“AGI delivered these strong results even amid the health crisis while tapping on its internal strengths – its differentiated products and services, extensive distribution network, diversified operations, massive landbank and healthy balance sheet,” says Kevin L. Tan, chief executive officer, AGI. “The pandemic has also prompted our organization to maintain our cost efficiencies in most areas of our operations. This provided a major boost in our nine-month consolidated net margin which went up 500 basis points from year ago level.”

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

“We look forward to the further reopening of the economy as this could bring about the much vaunted revenge spending in time for the holiday season,” continues Tan. “We expect the renewed activity to continue, paving the way for the Group’s full recovery from the pandemic hopefully by next year.”

Megaworld, the country’s premier township developer, sustained its sequential growth in revenues and earnings in the third quarter of 2021 with net income up sharply by 57% YoY to P3.2 billion while consolidated revenues rose by 50% YoY to P14.5 billion. Third quarter real estate sales more than doubled YoY and rose by 26% QoQ, driven largely by higher project completion despite the renewed lockdown during the same period. Megaworld Premier Offices reported a 7% QoQ growth in office rental income, as overall occupancy rates were maintained at 90% amid a resurgence in office leasing demand by the BPO sector. This supported the successful initial public offering of MREIT Inc., its flagship office REIT which was listed in the Philippine Stock Exchange on October 1. Megaworld Lifestyle Malls also saw its revenues grow by 16% YoY in the third quarter as mall occupancy rates improve to 82% with the slight easing of quarantine restrictions. Megaworld Hotels & Resorts seems well on its way to a recovery led by its in-city
hotels, with third quarter revenues higher by 121% YoY and 42% QoQ. For the nine-month period, consolidated revenues went up by 11% to P36.9 billion, bringing net profit higher by 10% YoY to P8.2 billion.

Emperador, the biggest global brandy company and owner of the world’s fifth largest Scotch whisky manufacturer, registered a 24% YoY increase in its first nine months net income to P7.3 billion, nearly matching its full year 2020 performance. This was achieved as consolidated revenues reached P38.4 billion, some 11% higher YoY, driven by the continued strong sales of its whisky and premium brandy brands across the globe despite logistical challenges. It is also worth noting that overall margins continued to improve year-to-date, reaching new record levels since Emperador forayed in the international market in 2014. In the third quarter, consolidated sales still grew 1% YoY even as it was coming off a high base, as Whyte and Mackay continued to do well in North America, Europe and Asia, mainly in China, while Fundador Spanish Brandy de Jerez sustained its strong sales in the UK, US and Canada, Mexico, Spain and in Asia. Fundador also remains the leading premium foreign brandy in the Philippines.

Travellers International, the owner and operator of Resorts World Manila (RWM), managed to overcome the re-imposed lockdown in the third quarter as gross revenues hit P5.0 billion, an increase of 36% YoY and 9% QoQ. This was driven largely by the resurgence in gross gaming revenues to P4.9 billion during the quarter, reflecting a 53% increase YoY and 46% QoQ. Hotel revenues have also been fairly stable, rising by 77% YoY and 21% QoQ, with overall hotel occupancy rates at 79%, nearly hitting its pre-pandemic level. For the nine-month period, Travellers reported a net income of P1.9 billion, reversing the losses of P5.4 billion recorded the year before. The company’s performance included some P5.6 billion in one-time gain from the services rendered by its subsidiary in relation to its Westside City project. Gross revenues year-to-date went up by 28% YoY to P14.8 billion, with gross gaming revenues up sharply by 37% YoY to P12.8 billion, nearly matching its full year 2020 level.

GADC has adapted well to the New Reality with sales revenues for the first nine months of the year growing by 25% YoY to P17.7-billion. This was achieved as McDonald’s managed to boost its sales through its upgraded online platform and increased drive-thru activities, while dine-in operations remained limited due to the ongoing restrictions mainly in Metro Manila. Net income for the same period stood at P183 million, an upward reversal from the losses of P967 million the year before. For the third quarter, sales revenues grew by 33% YoY to P5.9 billion, underpinned by the sharp 42% improvement in systemwide sales. Net income for the same quarter stood at P134 million, reversing its year ago losses of P257 million. GADC ended the period with 657 stores nationwide.