Alliance Global Group Inc. (AGI), the holding company of tycoon, Dr. Andrew Tan, is embarking on another heavy capital spending this year as part of its commitment to sustain recent growth pace.
The conglomerate is allocating capital expenditure (capex) this year of P75-billion, an increase of 19 percent from its actual spend of P63-billion in 2023. The budget also reflects an eight-year high since the P77-billion capital investments in 2016.
AGI’s planned capital spending is aimed at ensuring its premier positioning across its diversified business segments, affirming its position as the country’s premium lifestyle conglomerate.
“AGI remains steadfast and dedicated to driving growth across all its business segments, mindful of its goal to elevate global consumer preferences through aspirational product offerings,” the conglomerate’s president and chief executive officer, Kevin Tan, during the annual stockholders’ meeting July 18.
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.; and, quick service restaurants through Golden Arches Development Corporation, popularly known as McDonald’s Philippines, which has a long-term partnership with AGI and is led by its chairman and founder George Yang.
The bulk of Group capex, or about P55-billion, will be allocated for Megaworld, which intends to expand its real estate portfolio to 35 townships this year with the launch of new developments, mostly outside of Metro Manila, that should serve as its sources of growth in the future.
Part of the spend is also intended for its residential and hotel projects, with the latter mainly located in Iloilo and Boracay. It is likewise undertaking the development of new lifestyle malls in Boracay, Cavite, and Pampanga, as well as the construction of premium office buildings in Iloilo City, Bacolod, and Pampanga.
This is part of the company’s plans to bring the combined gross leasable space for its office and mall developments across the country to three million square meters by 2030, particularly in Bacolod, Pampanga, Bulacan, Iloilo, and Davao, its press release said.
“Our relentless pursuit of growth is also matched by our unwavering commitment to sustainability. We firmly believe that by harmonizing profitability with responsibility, we can pave the way for a brighter, more sustainable corporate landscape,” Tan stressed.
AGI posted a record performance in 2023 in terms of consolidated revenues, which grew by 15 percent year-on-year to P211.2-billion, while pre-minority income rose by 20 percent to P30.3-billion.
The Group forged results beyond pre-pandemic levels, even posting new highs in terms of sales, EBITDA, net profit, and all other operating metrics. Attributable profit amounted to P19.6-billion, reflecting an increase of 21 percent year-on-year. ||
