Andrew Tan marks historic ₱30-B AGI 2023 profit
Tycoon Dr. Andrew L. Tan marked the year 2023 as historic for its investment holding company Alliance Global Group Inc. (AGI), which posted a record profit of ₱30.3 billion despite higher inflation that pushed overall costs and expenses up.
In a disclosure to the Philippine Stock Exchange, the firm reported a 20 percent growth in net income to a record ₱30.3 billion while attributable net profit rose 21 percent to a new high of ₱19.6 billion.
Consolidated revenues hit an unprecedented level of P211.2 billion, reflecting a robust 15 percent growth from ₱183.6 billion the year before.
AGI Chief Executive Officer Kevin L. Tan said “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 the domestic and global market, various macro challenges in some key markets, rising cost pressures and higher interest rates. “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,” he added. Premier township developer Megaworld registered a 17 percent increase in consolidated revenues to ₱69.7 billion in 2023 from ₱59.5 billion the year before driven by the 16 percent growth in real estate sales, the sharp recovery in mall revenues by 54 percent and hotels by 46 percent, in addition to the 3 percent rise in rentals of offices.
Occupancy rates of Megaworld’s office spaces, malls, and Metro Manila hotels stood at 88 percent, 93 percent, and 67 percent, respectively. Reservation sales surged anew to ₱139 billion, boosted by project launches during the year amounting to ₱73 billion.
Travellers International, the Group’s leisure and tourism arm and owner-operator of Newport World Resorts (NWR), also broke new records in 2023 with net revenues growing by 19 percent year-on-year to P31.9 billion.
This was driven by the resurgence in tourism and meetings, incentives, conferences, and exhibition (MICE) activities, which allowed for a stellar 40 percent year-on-year increase in hotel and other revenues to ₱7.4 billion, while its
gross gaming revenues went up by 7 percent to a new high of P34.2 billion.
Despite rising cost pressures, EBITDA over the same period went up by 8 percent year-on-year to P8.2 billion, its highest level since 2012. Net income also grew by a robust 89 percent to P2.0 billion from last year’s P1.1 billion.
Emperador, the biggest global brandy company and among the fastest-growing Scotch whisky manufacturers, reported a 5 percent increase in consolidated revenues to P65.6 billion from year-ago level of P62.8 billion. Attributable net income stood at P8.6 billion. Quick service restaurants (QSR) through Golden Arches Development Corporation (GADC), popularly known as Mcdonald’s Philippines, sustained its strong growth trajectory in 2023 across all operating levels, driven by the sustained improvement in consumer spending.
A long-term partnership between AGI and the George
Yang Group, GADC reported record sales revenue of P42.8 billion, an increase of another 24 percent from P34.4 billion the year before. Systemwide sales also grew by 22 percent, backed by SSSG of 15 percent year-on-year.
Even with challenges brought about by higher raw material costs and operating expenses, the company registered attributable profit of P2.5 billion from P1.8 billion a year ago. Mcdonald’s Philippines closed the year with 740 stores throughout the country.
“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.
Armed with our superior product offerings, AGI is wellpositioned to take advantage of these enormous opportunities as they unfold,” said Tan.