PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

Alliance Global records Q1 surge

Posted on May 17, 2011 11:03:59 PM [ BusinessWorld Online ]
EARNINGS OF Alliance Global Group, Inc., the listed conglomerate of property tycoon Andrew L. Tan, almost tripled in the first quarter due to a one-time gain from its purchase of a realty firm.
“Alliance Global raised in the first quarter of 2011 its consolidated net income by 179% to P6.19 billion, including a nonrecurring gain of P3.35 billion from the acquisition of a subsidiary,” the company said in a disclosure yesterday.
In January, Alliance Global completed its acquisition of a majority stake in SobrepeƱa-led Fil-Estate Land, Inc., which is now Global-Estates Resorts, Inc.
“Alliance Global is on a strong growth trajectory,” Dina D.R. Inting, chief finance officer of Alliance Global, said in the same statement.
“Our net income, excluding the nonrecurring gain, is up by 28% to P2.85 billion,” she added.
The latest figures showed a faster profit growth compared with last year. In the first quarter last year, earnings of Alliance Global rose by 12% to P2.22 billion, driven by the property business Megaworld Corp.
"Revenues increased by 62% to P17 billion from P10.5 billion a year ago, primarily due to 39% growth in consumer products sales to P1.7 billion…,” the disclosure read.
These products could include those sold by subsidiaries MegaWorld, liquor maker Emperador Distillers, Inc., and McDonald’s franchise operator Golden Arches Development Corp.
The increase in revenues offset the increase in expenses.
“Costs and expenses went up by 32.7% to P10.2 billion from P7.7 billion…,” the disclosure read.
Higher sales translated into higher commissions, advertising and promotions, freight, royalty and fuel expenses, the firm said.
As a result, earnings of Megaworld jumped by 28% to P1.66 billion in the three-month period.
Emperador Distillers posted a net profit of P458 million in the first quarter.
But profits of Golden Arches declined by 5.73% to P148 million.
Early in April, Alliance Global raised P9.73 billion through treasury and secondary shares to bankroll the tourism business.
The conglomerate had also said it wanted to develop the 54-hectare old Iloilo airport and a 25-hectare property in Mactan, Cebu, both in the Visayas.
Shares in Alliance Global, which has a market value of P118.51 billion, rose by 0.17% to P11.56 apiece yesterday. -- Neil Jerome C. Morales

real estate central philippines
Copyright ©2008-2018