News and Press Release > AGI grows 9mo profit by 18% to P20.1B, revenues up 17% to P150B
Press Release | Alliance Global Group, Inc. | November 14, 2023

AGI grows 9mo profit by 18% to P20.1B, revenues up 17% to P150B

Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) registered an 18% growth for its net income during the first nine months of 2023, clocking in at P20.1 billion from P17.1 billion during the same period last year. The company registered a healthy 17% growth in consolidated revenues during the period, bringing the level to P150.4 billion from P128.4 billion the year before. This was driven by the continued rise in consumer spending and improved economic activity despite prevailing macroeconomic headwinds. Meanwhile, attributable profit ended higher by 9% to P12.9 billion from P11.9 billion recorded in the same period of last year.

In the third quarter of 2023, consolidated revenues expanded by 12% year-on-year (YoY) to P51.3 billion, while net income went up by 16% YoY to P6.0 billion. Attributable profit stood at P3.7 billion.

“The Alliance Global Group has sustained its strong financial and operating performance in the first nine months of the year even in the wake of persistent domestic and global economic challenges,” says Kevin L. Tan, chief executive officer, AGI. “During the period, the Group continued to introduce new and exciting experiences across all our business segments, delivering superior products and services in the local and international market,” continues Tan.

Megaworld, the country’s premier township developer, registered a robust 43% improvement in net income in the first nine months of the year to P12.0 billion from P8.4 billion the year before. The company’s consolidated revenues increased by 14% YoY to P48.6 billion as it benefited from a resilient economy, which continued to see buoyant discretionary mall spending, sustained need for staycations and leisure activities, as well as an uptick in demand for residential properties.

Real estate sales, which accounted for 60% of total revenues, grew by 11% YoY to P29.0 billion, bringing the level closer to its pre-pandemic experience. Sales reservations also shot up by 28% YoY to P109.5 billion, driven by its attractive big-ticket projects catering mainly to the mid- to high-income segments of the residential market.

Its Megaworld Lifestyle Malls continued to recover, with revenues up sharply by 70% YoY to P3.9 billion, helped by improving foot traffic, normalization of rent, and a resurgence in demand for more exciting shopping and dining experiences. Revenues of Megaworld Hotels & Resorts also expanded by 51% YoY to P2.6 billion, supported by increased domestic tourism activities. Megaworld Premier Offices also posted a stable 3% YoY improvement in office rental income to P9.4 billion on above-industry occupancy of 89% despite the prevailing hybrid work setup.
In the third quarter of the year, Megaworld’s consolidated revenues grew by 10% YoY to P16.6 billion, while its attributable net income jumped by 65% YoY to P4.1 billion.

Emperador, the biggest brandy company in the global market and amongst the fastest-growing Scotch whisky manufacturers, recorded a healthy 10% increase in consolidated revenues in the first three quarters of the year to P47.1 billion from year-ago level of P42.6 billion.

Its whisky revenues have sustained its stellar growth pace of 22% YoY to P19.3 billion as its premium whisky brands have maintained their popularity mainly in Asia and North America, coupled with the resurgence in travel retail sales. Its brandy segment posted a modest 4% YoY increase in revenues to P27.8 billion, supported by some price adjustments and improving sales of its premium brands despite the stiff competition in the market. Amid rising inventory costs, coupled with higher selling and operating expenses, attributable net income during the period stood at P6.8 billion.

In the third quarter of the year, Emperador recorded a 10% YoY growth in consolidated revenues to P16.0 billion, while its attributable profit rose by 5% YoY to P2.0 billion.

Travellers International, the Group’s leisure and tourism arm and owner/operator of Newport World Resorts (NWR), recorded net revenues of P23.3 billion in the first nine months of the year, exceeding its pre-pandemic level and reflecting a growth of 27% YoY. This was driven by the resurgence in tourism and MICE activities which allowed for a robust 41% YoY increase in hotel and other revenues to P5.0 billion, while its gross gaming revenues went up by 14% YoY to P25.9 billion. Amid rising cost pressures, EBITDA over the same period went up by 12% YoY to P6.0 billion. This brought its net income to P773 million, reversing the previous year’s losses of P235 million.

In the third quarter of 2023, net revenues grew by 25% YoY to P8.1 billion, buoyed by the 37% YoY expansion in hotel and other revenues to P1.7 billion, while gross gaming revenues rose by 3% YoY to P8.3 billion, with the continued improvement in the mass segment.

GADC, the country’s most dynamic quick-service restaurant operator, has maintained its sequential growth when it posted total sales revenues of P10.6 billion in the third quarter of 2023, up by 23% YoY. This brings its tally for the first nine months of 2023 to P30.7 billion, reflecting a 28% increase from P23.9 billion the year before, as McDonald’s Philippines remained relevant in the highly competitive consumer sector with its creative product offerings and pricing. Its net income in the third quarter this year almost doubled to P498 million, bringing its nine-month total 44% higher YoY to P1.47 billion. The company, which holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand, has a long-term partnership with AGI and is led by its Chairman and Founder George Yang. GADC ended the period with 705 stores nationwide.

“We look forward to a more hectic economic activity in the last quarter, accompanied by the
much-vaunted holiday spending. Given our superior and attractive product offerings, and armed with an indomitable spirit, we hope to end the year on a stronger note regardless of the macro headwinds,” says Tan.

The Andrew Tan conglomerate has varied interests spanning real estate developments through property giant Megaworld Corporation; leisure, entertainment, and hospitality through Travellers International Hotel Group, Inc.; spirits manufacturing through Emperador Inc.; quick service restaurants through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines, which is a strategic partnership with the George Yang Group; and infrastructure developments through Infracorp Development Corporation.

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