3 large conglomerates report robust net profits

Three of the country’s largest conglomerates reported strong profits in the first nine months as they took advantage of market opportunities brought about by the expanding economy.

Alliance Global Group Inc., the holding company of billionaire Andrew Tan, said in a disclosure to the stock exchange net income attributable to owners grew 18 percent in the first nine months to P12.1 billion from P10.2 billion a year ago.

The company registered the profit on the back of a healthy 12-percent hike in consolidated revenues to P112.1 billion from P100.3 billion. AGI has investments in real estate, gaming, quick service restaurants and infrastructure.

“We recognize the many exciting opportunities in the market, both domestic and international, as we continue to pursue our aggressive expansion program with an investment commitment of P240-billion up to 2020. At the same time, we intend to manage our costs and keep our gearing levels low as we remain vigilant of the global economic headwinds,” Alliance Global chief executive Kevin Tan said.

Ayala Corp. said nine-month net income rose 3 percent to P23.9 billion as equity in net earnings jumped 9 percent to P29.3 billion, led by strong contribution from units Ayala Land Inc, Globe Telecom and AC Energy.

It said net income in the third quarter declined 5 percent to P7.8 billion as the weak performance of automotive and energy units offset the higher earnings of other subsidiaries.

“These results reflect the value of having a well-diversified portfolio. While some businesses have more exposure to the impact of certain local and global macroeconomic and industry challenges, other businesses have been fairly insulated and are providing a positive balance to our portfolio,” Ayala president and chief operating officer Fernando Zobel de Ayala in a statement said.

Meanwhile, Filinvest Development Inc. of the Gotianun family said it posted a net income of P10.5 billion in the January to September, up 46 percent from a year ago.  This was driven by a 12-percent growth in consolidated revenues to P4.2 billion.

The group’s property business accounted for 43 percent of total revenues followed by banking which contributed 40 percent. The balance was contributed by power and sugar operations.

“Our investments in power, property and in the bank infrastructure is now being reflected in the healthy increase of FDC’s net income,” Filinvest Development president and chief executive Josephine Gotianun-Yap said.

Topics: Alliance Global Group Inc. , net profits , net income
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