AGI’s 2018 profit hits record high of P24-B

Sun.Star Pampanga - - TOPSTORIES! -

MANILA— — Al­liance Global Group, Inc. (AGI), the in­vest­ment hold­ing com­pany of ty­coon Dr. An­drew L. Tan, re­ported a ban­ner year in 2018 with con­sol­i­dated net in­come amount­ing to P23.7-bil­lion from its re­stated profit of P22.3-bil­lion in 2017. The Group adopted the ac­count­ing changes under Philip­pine Fi­nan­cial Re­port­ing Stan­dards (PFRS) 15 for its 2018 fi­nan­cial state­ments, which re­sulted to pre­vi­ous year’s per­for­mance be­ing re­stated for com­par abi l i t y.

Con­sol­i­dated rev­enues in 2018 ended the yearatP160.7-bil­lion, re­flect­ing a sharp 14 per­cent in­crease from its year ago re­stated level ofP141.3bil­lion.

“This is a mile­stone per­for­mance for AGI and proves that our ag­gres­sive ex­pan­sion strate­gies which we started im­ple­ment­ing across our var­i­ous busi­ness seg­ments about five years ago have be­gun to bear fruit. Now, all our ma­jor busi­ness seg­ments are­con­tribut­ing strongly to the Group’s growth. We look forward to sus­tain­ing this mo­men­tum in the com­ing years,” says Kevin L. Tan, chief ex­ec­u­tive of­fi­cer, AGI.

The Al­liance Global Group is com­posed of its real es­tate arm Me­ga­world Cor­po­ra­tion, global liquor sub­sidiary Em­per­ador Inc., gam­ing and leisure op­er­a­tions under Trav­ellers In­ter­na­tional Ho­tel Group Inc., quick ser­vice restau­rants busi­ness through Mc­Don­ald’s Philip­pines under Golden Arches De­vel­op­ment Cor­po­ra­tion (GADC), and in­fra­struc­ture arm In­fra­corp De­vel­op­ment Inc.

“We re­main un­re­lent­ing in our ex­pan­sion plans as we view with op­ti­mism the coun­try’s eco­nomic prospects de­spite some tem­po­rary chal­lenges. We are al­lo­cat­ing around P85-bil­lion in CAPEX this year, a sig­nif­i­cant in­crease from the P70-bil­lion in ac­tual ex­pen­di­tures in 2018. About 90% of this year’s bud­get will fund the healthy ex­pan­sion pro­jects of Me­ga­world and Trav­ellers,” re­veals Tan.

Me­ga­world, the coun­try’s largest de­vel­oper of in­te­grated ur­ban town­ships, postedan­other record year in 2018 as at­trib­ut­able net in­come reached P15.2-bil­lion, re­flect­ing an in­crease of 16% from a re­stated profit of P13.1-bil­lion in 2017.

“We are very pleased with Me­ga­world’s per­for­mance, and will con­tinue to but­tress its po­si­tion as the coun­try’s leader in town­ship de­vel­op­ments, as well as its prime mover po­si­tion in pro­vid­ing of­fice spa­ces for the grow­ing BPO sec­tor,” adds Tan.

Con­sol­i­dated rev­enues grew at a ro­bust rate of 15 per­cent to P57.4-bil­lion from P50.1-bil­lion (re­stated) a year ago, driven by the 21 per­cent ex­pan­sion in rental in­come and 11% in­crease in real es­tate sales.

Rentals from its of­fice build­ings and Me­ga­world Life­style Malls reached P14.3-bil­lion, amid its con­tin­ued ex­pan­sion in gross leasable area to 1.5mil­lion square me­ters (sqm). Re­cent ad­di­tions in rental spa­ces in­clude its of­fice build­ings 10 West Cam­pus in McKin­ley West and East­wood Global Plaza in East­wood City, as well as its Fes­tive Walk Mall in Iloilo Busi­ness Park.

Real es­tate sales rose to P38.0-bil­lion from P34.1-bil­lion (re­stated) given in­creased pro­ject com­ple­tions in McKin­ley Hill, McKin­ley West, Up­town Boni­fa­cio, West­side City and Twin Lakes. Like­wise, dur­ing the year, Me­ga­world reg­is­tered an un­prece­dented level in sales reser­va­tions

of P135-bil­lion mainly from new pro­ject launches like Bayshore Res­i­den­tial Re­sort 2, Gen­try Manor and Grand West­side Ho­tel, all lo­cated in West­side City, as well as Up­town Arts Res­i­dences lo­cated in Up­town Bon i f aci o.

Trav­ellers In­ter­na­tional, owner and op­er­a­tor of Resorts World Manila (RWM), recorded an at­trib­ut­able net in­come ofP1.4-bil­lion, up sharply fromP290-mil­lion a year be­fore. Gross rev­enues from its gam­ing and nongam­ing op­er­a­tions rose by 17 per­cent dur­ing the pe­riod to P24.7-bil­lion while prop­erty visi­ta­tion reached an av­er­age of 28,500 per day.

Gross gam­ing rev­enues(GGR) stepped up its pace, grow­ing by17% to P20-bil­lion. This was bol­stered by a sharp 55 per­cent im­prove­ment in VIP GGR, due in part to the open­ing of the ground floor gam­ing area at the Grand Wing. As the facility ramps up its op­er­a­tions, this is ex­pected to fur­ther drive RWM’s prime gam­ing busi­ness mov­ing forward.

Non-gam­ing rev­enues also went up by 17 per­cent year-on-year to P4.7-bil­lion, with ho­tel oc­cu­pancy rates hit­ting an av­er­age of 79 per­cent. The com­pany’s in­ter­na­tional ho­tel port­fo­lio gained another pre­mium brand last year with the launch of the 357-room Hil­ton Manila Ho­tel. The Sher­a­ton Ho­tel also soft­opened in Jan­uary, adding another 391 rooms within the complex.

The com­bined ho­tel port­fo­lio of Me­ga­world and Trav­ellers now to­tals over 5,000 room keys, mak­ing AGI the big­gest owner and op­er­a­tor of ho­tels in the coun­try. A firm be­liever in the at­trac­tive po­ten­tials of the Philip­pine tourism sec­tor, the Group ex­pects to add another 1,000 rooms this year. The near-term ob­jec­tive is to bring its to­tal ho­tel room capacity to 12,000 keys in three to five years.

Em­per­ador, the world’s big­gest brandy pro­ducer and owner of the world’s fifth largest Scotch whisky man­u­fac­turer, also posted record rev­enues of P47.1bil­lion in 2018, grow­ing at a 10 per­cent clip from its year ago level of P42.7-bil­lion. EBITDA grew by eight per­cent to P10.3-bil­lion while at­trib­ut­able net in­come rose by five per­cent to P6.7-bil­lion.

Its in­ter­na­tional whisky op­er­a­tions under Whyte & Mackay re­mained the big­gest driver to topline growth as its well-known brands The Dal­more, Jura, Tam­navulin and Shack­le­ton con­tin­ued to gain good trac­tion in var­i­ous mar­kets around the world, par­tic­u­larly in Asia. Its pre­mium brandy op­er­a­tions under Bode­gas Fun­dador also en­joyed suc­cesses in Europe and Asia with its iconic Fun­dador Brandy de Jerez and Fun­dador Supremo.

Em­per­ador Brandy has main­tained its lead in the do­mes­tic mar­ket de­spite the stiff com­pe­ti­tion. Late last year, the com­pany also in­tro­duced The Bar Pre­mium Gin which was warmly re­ceived by the mar­ket given its unique taste en­hanced by botan­i­cals.

GADC, which holds the exclusive fran­chise of Mc­Don­ald’s in the Philip­pines, re­ported at­trib­ut­able net in­come of P1.6-bil­lion in 2018 on­sales rev­enue­sof P28.3-bil­lion. Same-store sales growth reached four per­cent.

With its con­tin­ued store ex­pan­sion, GADC ended the year witha to­tal store count of 620, com­pared to 566 stores in 2017. It also in­tro­duced its first 17 NXTGEN stores which have self-or­der­ing kiosks, mod­ern­ized menu boards and cash­less pay­ment modes. GADC targets to add another 60 NXTGEN stores this year, fur­ther rais­ing the bar in bring­ing the Mc­Don­ald’s world-class ex­pe­ri­ence to con­sumers in the Philip­pines. (Press Re­lease)

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