AGI profit surged to high of P 19.6B in ’23, up 21%
Alliance Global Group Inc. (AGI) of billionaire Andrew Tan recorded a 21-percent increase in attributable net profit last year to a record high P19.6 billion on stronger performance of its real estate, tourism and consumer segments as spending rebounded postpandemic.
Total net income, meanwhile, grew by 20 percent to a “record-breaking” P30.3 billion.
“This was achieved even amid heightened competition in the domestic and global market, various macro challenges in some key markets, rising cost pressures and higher interest rates,” AGI CEO Kevin Tan said in a statement on Tuesday. The holding company’s consolidated revenues likewise expanded by 15 percent to P211.2 billion.
AGI currently has interests in real estate via Megaworld Corp., spirits through Emperador Inc., leisure and hospitality through Travellers International Hotel Group Inc., quick service restaurants via Golden Arches Development Corp. (GADC), and infrastructure development through Alliance Global-Infracorp Development Inc.
Stable consumer spending
On the part of Megaworld, it registered a 17-percent growth in revenues to P69.7 billion, driven by a 16-percent growth in real estate sales and a recovery in Megaworld Lifestyle Malls revenues.
Stable consumer spending amid economic recovery likewise pushed occupancy rates in Megaworld’s office spaces, malls and Metro Manila hotels higher.
The revenues of Travellers International, the owner and operator of Newport World Resorts, also surged by 19 percent to P31.9 billion, riding on the resurgence of tourism and meetings, incentives, conferences and exhibition activities.
Emperador, meanwhile, reported a 5-percent rise in revenues to P65.6 billion due to better international whisky sales.
GADC, also known as McDonald’s Philippines, saw record sales at P42.8 billion, up from P34.4 billion in 2022, as consumer spending grew.
“For 2024, we look forward to the much-anticipated policy rate cuts as inflation begins to ease, improving the economic and business environment with the resurgence in consumer spending, as well as demand for housing, tourism and staycation activities,” Tan said. INQ
