AGI records P10.3-B net income in 2020

ALLIANCE Global Group, Inc. (AGI) is recalibrating its strategies, particularly on market focus of its various companies, in order to achieve a ‘more balanced’ portfolio as the conglomerate prepares for post-pandemic scenarios such as shift in market demands, and changes in customer behaviors and lifestyles.

AGI saw its net income drop by 62 percent to P10.3-billion in 2020 compared to the P27.1-billion recorded the previous year, as the pandemic hit most of its businesses. Consolidated revenues were also down 28 percent to P129-billion from the previous year’s P180-billion, while net income to owners stood at P8.8-billion.

However, double-digit recovery was achieved by its core businesses in the fourth quarter as the government eased quarantine restrictions toward the long holiday season.

Liquor sales of Emperador grew 42 percent during the fourth quarter compared to the previous quarter; sales of McDonald’s Philippines also jumped 36 percent quarter-on-quarter; gaming revenues of Resorts World Manila also grew 33 percent; and real estate sales of Megaworld was up 22 percent in the last quarter compared to the third quarter.

“This pandemic really taught us so many lessons as a Group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio that could provide a balanced stream of earnings in a post-pandemic scenario,” Kevin L. Tan, chief executive officer, AGI, said.

Last year, two of AGI’s biggest companies – Emperador and Megaworld– benefitted strongly from such deliberate diversification strategies designed to solidify their revenue and earnings base.

During the strict lockdown last year, Emperador performed exceptionally in its global liquor operations, particularly for its brandy and whisky products in Europe, Asia, North America, Latin America, and Africa, offsetting and overtaking the low domestic sales of liquor due to the liquor bans imposed during the quarantine.

Megaworld, on the other hand, was able to benefit from its strong and stable office leasing portfolio, as it catered to provide available office spaces in attractive township settings to companies that were expanding, or looking for new, business-ready locations.

During the year, AGI also fully accelerated its digitalization strategy with investments in Agile Digital Ventures, a wholly-owned subsidiary of Megaworld. Its companies also focused on digital innovations and developed various platforms for their various operations such as iFAE for its residential customers, e-concierge for its hotels, McDelivery PH App for McDonalds, Boozy.ph for liquor delivery, RWM mobile App for Resorts World Manila, and Pick.A.Roo as an all-in-one delivery App, mainly to support the retail partners. /