Alliance Global Group Inc. (AGI), the holding company of tycoon Dr. Andrew Tan, achieved a record-breaking net income of P30.3-billion, up 20 percent year-on-year despite higher inflation, which pushed overall costs and expenses up during the period.
The attributable net profit stood at a new high of P19.6-billion, reflecting a 21 percent increase from the year before, the AGI said in a press release April 17, adding that consolidated revenues hit an unprecedented level of P211.2-billion, and showed a robust 15 percent growth from the P183.6 billion logged in 2022.
“2023 was a historic year for the Group as it delivered excellent performance across all of its businesses, led by its real estate, tourism, and consumer segments. This was achieved even amid heightened competition in domestic and global markets, various macro challenges in some key markets, rising cost pressures and higher interest rates,” Kevin Tan, AGI chief executive officer, said.
“Most of our businesses have forged results beyond pre-pandemic levels, even posting new highs in terms of sales, EBITDA, net profit, and all other operating metrics. Such strong performance has encouraged us to carry on with our aggressive business strategies and expansion plans across our diversified portfolio,” Tan added.
AGI has varied interests spanning real estate developments through property giant Megaworld Corporation; spirits manufacturing through Emperador Inc.; leisure, entertainment, and hospitality through Travellers International Hotel Group Inc.; quick service restaurants (QSR) through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines; and infrastructure development through Infracorp.
Premier township developer Megaworld registered a 17 percent increase in consolidated revenues to P69.7-billion in 2023, from P59.5-billion the year before. This was driven by the sustained 16 percent year-on-year growth in real estate sales, the sharp recovery in the revenues of Megaworld Lifestyle Malls by 54 percent, and Megaworld Hotels by 46 percent, in addition to the three percent rise in rentals of Megaworld Premier Offices.
Supported by the stable growth in consumer spending and foot fall as the economy continues to recover, occupancy rates of Megaworld’s office spaces, malls, and Metro Manila hotels stood at 88 percent, 93 percent, and 67 percent, respectively. Reservation sales, on the other hand, surged anew to P139-billion, boosted by project launches during the year, amounting to P73-billion.
Travellers International, the Group’s leisure and tourism arm and owner-operator of Newport World Resorts, also broke new records in 2023 with net revenues growing by 19 percent year-on-year to P31.9 billion, driven by the resurgence in tourism, and meetings, incentives, conferences, and exhibition (MICE) activities, the AGI said.
Emperador, the biggest global brandy company and amongst the fastest-growing Scotch whisky manufacturers, reported a five percent increase in consolidated revenues of P65.6 billion from year-ago level of P62.8-billion.
GADC also sustained its strong growth trajectory in 2023 across all operating levels, driven by the sustained improvement in consumer spending.
“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. “Armed with our superior product offerings, AGI is well-positioned to take advantage of these enormous opportunities as they unfold.” ||
