AGI posts P25-B profit in 2022

Alliance Global Group, Inc. (AGI), the holding company of tycoon Dr. Andrew L. Tan, reported a six percent growth in consolidated net income to P25.2 billion last year from P23.8 billion in 2021.

In a disclosure to the Philippine Stock Exchange, the firm said there was a 4.7 percent dip in attributable net income to P16.1 billion last year from P16.1 billion in 2021.

AGI said this is because increased inflationary pressures, higher cost of raw material and ongoing distribution bottlenecks pushed overall costs and expenses to grow at a faster pace.

It also noted that, in 2021, AGI’s performance included significant extraordinary items booked under its gaming unit, which if netted out should reflect a growth of 27 percent year-on-year in AGI’s core profit, while core attributable income should show a seven percent improvement from the year before.

AGI said its 2022 consolidated revenues surged to a record level of P183.6 billion, reflecting a robust 20 percent growth from P152.8 billion the year before.

“The country’s sustained economic recovery helped propel the sequential topline improvement of all our business segments last year, leading to our record performance in consolidated revenues in 2022,” said AGI Chief Executive Officer Kevin L. Tan.

He added that, “It also helped that our Group’s diversified portfolio has remained agile to spot and seize opportunities in the market place.”

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AGI has varied interests spanning real estate developments through Megaworld Corporation; spirits manufacturing through Emperador Inc.; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; quick service restaurants (QSR) through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines; and infrastructure development through Infracorp.

“All our businesses exhibited a sharp recovery in 2022. Our spirits, gaming and entertainment, as well as QSR units have registered unprecedented levels of revenue last year, driven by their respective strong brand equity and effective marketing strategies,” said Tan.

He noted that, “Our real estate business also performed mostly above its peers, particularly in terms of keeping office rentals steady, higher-than-industry occupancy rates for its offices and hotels, and robust residential pre-sales.”

In 2022, township developer Megaworld registered a 17 percent increase in consolidated revenues to P59.5 billion, supported by the 18 percent year-on-year growth in real estate sales, 51 percent recovery in rentals of malls, 35 percent jump in revenues of hotels, and the sustained 11 percent rise in rentals of offices.

Emperador reported another record performance in 2022 as consolidated revenues grew 12 percent to P62.8 billion from year-ago level of P55.9 billion.

GADC reported an unprecedented level of sales revenue of P34.4 billion, up sharply by 38 percent from P24.9 billion the year before. Systemwide sales also grew by 38 percent, backed by SSSG of 31 percent year-on-year.

Even with challenges brought about by higher raw material costs and operating expenses, the company more than doubled its attributable profit to P1.8 billion from P869 million. McDonald’s Philippines closed the year with 704 stores throughout the country.

“As we face a challenging global and domestic macro environment, our Group remains optimistic of our growth prospects this year, armed with the belief that our sound business strategies, competitive positioning and healthy financial standing will continue to bear us through as we move forward,” said Tan.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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