Alliance Global Group Inc. allots P85 billion capex for 2019

MANILA, Philippines — Alliance Global Group Inc. (AGI), the listed conglomerate of tycoon Andrew Tan, is pouring in P85 billion in capital expenditures this year, a significant increase from the P74 billion spent in 2018 to sustain growth and its healthy expansion.

The company grew its net income to P23.7 billion last year from P22.3 billion a year ago.

AGI raked in P160.7 billion in revenue, a 14 percent increase from the restated level of P141.3 billion.

It has adopted the accounting changes under Philippine Financial Reporting Standards (PFRS) 15 for its 2018 financial statements, which resulted in the previous year’s performance being restated for comparability.  

Kevin Tan, AGI chief executive officer, said the 2018 performance proves that the company’s aggressive expansion strategies had begun to bear fruit.  

“Now, all our major business segments are contributing strongly to the group’s growth.  We look forward to sustaining this momentum in the coming years,” Tan said.

The company is composed of its real estate arm Megaworld Corp., 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. 

Moving forward, Tan said the company remains optimistic despite some challenges.

“We remain unrelenting in our expansion plans as we view with optimism the country’s economic prospects despite some temporary challenges,” he said.

Megaworld grew its 2018 attributable net income 16 percent to P15.2 billion from a restated profit of P13.1 billion in 2017. 

Travellers International, owner and operator of Resorts World Manila (RWM), recorded an attributable net income of P1.4-billion, up sharply from P290 million a year before. Gross revenues from its gaming and non-gaming operations rose by 17 percent during the period to P24.7 billion while property visitation reached an average of 28,500 per day. 

Emperador, the world’s biggest brandy producer and owner of the world’s fifth largest Scotch whisky manufacturer, also posted record revenues of P47.1 billion in 2018, growing at a 10 percent clip.  

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