Andrew Tan’s AGI rakes in record P30.2-B profit in 2023

Andrew Tan’s AGI rakes in record P30.2-B profit in 2023 | Daily Tribune

Despite challenges posed by higher inflation, Alliance Global Group, INC. (AGI), the holding company of billionaire Andrew L. Tan, saw its net income in 2023 zoom 20 percent to a record P30.2 billion.

In a stock exchange report on Tuesday, the property, casino, liquor, and fast food conglomerate said attributable net profit also delivered an all-time high record of P19.6 billion, a 21 percent jump from the previous year.

Likewise, consolidated revenues clocked in at P211.2-billion, which was a 15 percent growth from P183.6-billion the year before.

Historic year

“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. This 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,” AGI chief executive officer Kevin L. Tan said.

“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,” Tan added.

AGI has varied interests spanning real estate developments through property giant Megaworld Corporation; spirits manufacturing through Emperador Inc.; and leisure, entertainment, and hospitality through Travellers International Hotel Group Inc.

It also has investments in quick service restaurants through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines; and infrastructure development through Infracorp.

Business units deliver growth

Based on the AGI report, Megaworld Corp., the country’s largest landlord, had a 17 percent increase in consolidated revenues to P69.7 billion in 2023 from P59.5 billion the year before.

The company’s growth was mainly due to a 16 percent increase in real estate sales compared to the previous year.

Additionally, Megaworld Lifestyle Malls and Megaworld Hotels experienced a significant recovery with a 54 percent and 46 percent increase in revenue, respectively. Megaworld Premier Offices also contributed to the growth with a 3 percent rise in rentals.

In 2023, Travellers International, the leisure and tourism arm of the Group, which owns and operates Newport World Resorts, broke new records with a 19 percent year-on-year increase in net revenues to P31.9 billion.

Additionally, Emperador, a brandy firm, reported a consolidated revenue increase of 5 percent to P65.6 billion from the previous year’s P62.8 billion.

GADC continued its impressive growth trajectory in 2023, with growth across all levels of operation amid stronger consumer spending.