AGI posts record P30.3 billion profit

AGI posts record P30.3 billion profit

MANILA, Philippines — Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, saw its profit rise by a fifth to reach record high levels in 2023 despite higher inflation, which pushed overall costs and expenses up during the year.

AGI reported a 20-percent jump in net income to P30.3 billion last year, while attributable net profit also rose to a new high of P19.6-billion, up 21 percent year-on-year.

Revenues for the year reached P211.2 billion, 15 percent higher than the P183.6 billion recorded in 2022.

“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,” AGI chief executive officer Kevin Tan said.

Tan said last year’s performance 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 said.

Megaworld posted a 17-percent jump in revenues to P69.7 billion in 2023 driven by growth in real estate sales coupled with the recovery in its malls and hotels.

Travellers International, owner-operator of Newport World Resorts, posted a 19 percent year-on-year increase in revenues to P31.9 billion.

Sustained improvement in international whisky sales, meanwhile, buoyed revenues of Emperador by five percent to P65.6 billion in 2023.

Golden Archers Development Corp. (GADC), a partnership between AGI and the George Yang Group, which holds the exclusive franchise to operate McDonald’s restaurants in the Philippines, reported a record level of sales revenue of P42.8-billion, a 24-percent expansion year-on-year.

McDonald’s Philippines ended 2023 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,” Tan said.

“Armed with our superior product offerings, AGI is well-positioned to take advantage of these enormous opportunities as they unfold,” he said.