AGI allots P75 billion for 2024 capex

Richmond Mercurio - The Philippine Star
AGI allots P75 billion for 2024 capex
Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew TaN.
star / fILE

MANILA, Philippines —  Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, has set aside P75 billion for capital spending this year to support the continuous growth and expansion of its businesses.

This year’s P75 billion capital expenditures budget is higher than the P66 billion capital spending of the group in 2023.

Majority or P55 billion of this year’s capex will go to real estate giant Megaworld, which will use the amount to develop its existing and upcoming townships, residential projects, investment properties as well as land acquisition.

Entertainment and hospitality arm Travellers International Hotel Group Inc., meanwhile, will get P15 billion of the group’s capex for 2024 to bolster further its presence in the hospitality sector.

Travellers International continues to be the largest integrated resort in terms of footprint with 2,742 hotel room keys across its five international hotel brands.

Spirits manufacturing unit Emperador Inc. has been allotted with a budget of P6 billion this year, while Golden Arches Development Corp. (GADC), the company behind McDonald’s Philippines, will have P4 billion.

McDonald’s Philippines, which has over 740 stores all over the country to date, will open at least 60 stores this year.

GADC is a partnership between AGI and the George Yang Group. It holds the exclusive franchise to operate McDonald’s restaurants in the Philippines.

For the first quarter, AGI posted a 10-percent drop in its attributable income to P4.2 billion from P4.7 billion in the same period last year.

AGI said higher input costs, marketing expenses and interest charges, as well as unrealized foreign exchange losses capped profitability for the period.

Revenues, meanwhile, improved by one percent year-on-year to P50.6 billion, driven mainly by the surge in real estate sales, coupled with strong revenues from quick service restaurants and tourism-related spending.

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