AGI income surges on real estate, gaming

ALLIANCE Global Group Inc. (AGI), the holding firm of businessman Andrew l. Tan, said its income last year grew 20 percent to P30.3 billion from the previous year’s P25.18 billion despite the spike in consumer prices.

Consolidated revenues hit P211.2 billion, a 15-percent increase from the previous P183.6 billion.

“Most of our businesses have forged results beyond pre-pandemic levels, even posting new highs in terms of sales, EBITDA [earnings before interest, taxes, depreciation and amortization], 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,” Kevin Andrew l. Tan, the company’s CEO, said.

Travellers International Hotel Group Inc., the delisted leisure and gaming arm, and owner-operator of Newport World Resorts, said its net income jumped by 89 percent to P2 billion from last year’s P1.1 billion.

Net revenues rose 19 percent year-on-year to P31.9 billion, as gross gaming revenues went up by 7 percent to a new high of P34.2 billion.

The resurgence in tourism and meetings, incentives, conferences, and exhibition activities, allowed for a 40 percent year-onyear increase in hotel and other revenues to P7.4 billion.

Emperador Inc., the biggest global brandy company, saw its net income plunge by 34 percent to P3.65 billion from the previous year’s P5.52 billion as interest expenses rose while brandy sales fell.

Consolidated revenues grew by a slim 4 percent to P65.6 billion from the previous year’s P62.8 billion.

Revenues from the brandy sales declined almost 2 percent to P39.97 billion from the previous year’s P40.68 billion on softer consumer demand for its products.

Revenues from the whiskey market rose 16 percent to P25.67 billion from the previous year’s P22.08 billion as the product’s performance improved across many markets.

The company said its single malt brands—the Dalmore, Fettercairn, Jura and Tamnavulin— continue to make significant inroads in major markets like China, North America and travel retail.

Golden Arches Development Corp. (GADC) also sustained its strong growth trajectory in 2023 across all operating levels, driven by the sustained improvement in consumer spending.

Its quick service restaurants segment through GADC, that holds the exclusive franchise to operate Mcdonald’s fastfood chain in the Philippines, reported attributable profit of P2.5 billion from P1.8 billion a year ago.

The company said its sales reached a record P42.8 billion, an increase of 24 percent from P34.4 billion during the previous year.

Systemwide sales also grew by 22 percent, backed by systemwide sales growth of 15 percent yearon-year. Even with challenges brought about by higher raw material costs and operating expenses, 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 well-positioned to take advantage of these enormous opportunities as they unfold,” the younger Tan said.