Conglomerates Alliance Global Group Inc. and Filinvest Development Corp. reported higher profits in the first nine months, on positive performance of core businesses.
Alliance Global, the investment holding company of tycoon Andrew Tan, said net income in January to September increased 7 percent to P17.3 billion from a year ago.
The conglomerate attributed the higher profit to cost efficiency across all business segments, allowing for better operating margins as consolidated revenues rose 2 percent to P101.6 billion.
Net income attributable to common shareholders rose 4 percent to P11 billion from a year earlier.
“We have been deliberate in the execution of our growth strategies for each of our key businesses, bearing in mind the changing competitive landscape in the various sectors we are in,” said Alliance Global president Kingson Sian.
“Megaworld’s aggressive thrust to grow its investment properties is now paying off as this has resulted in an increased recurring income stream which has insulated the company from the vagaries of the property cycle,” Sian said.
He said Travellers’ expanded amenities at Resorts World Manila continued to make it a popular integrated resorts destination despite intensifying competition in the gaming sector.
“In the case of the McDonald’s operations of Golden Arches, its store expansion program further enhanced its cost management, significantly boosting its bottomline performance. Meanwhile, Emperador’s global strategy has provided it with another leg of growth as it expands its international presence,.” Sian said.
FDC, the holding company of the Gotianun family, also booked a net income of P5.9 billion in the first nine months, reflecting a year-on-year growth of 21 percent.
The conglomerate said a large part of the growth was delivered by banking subsidiary EastWest Bank, which registered a hefty 78-percent increase in net profit to P2.3 billion in the nine-month period.
Net income from property subsidiary Filinvest Land Inc. grew 7 percent to P3.5 billion while power subsidiary FDC Utilities Inc. marked a major milestone in September with the inauguration of a 135-megawatt clean coal power plant in Villanueva, Misamis Oriental.
“We are proud to say that all three units are now connected to the grid. Two units have been declared commercially operational and we expect the third to be declared before year end,” FDC president and chief executive Josephine Gotianun-Yap said.
