MANILA, Philippines, April 6, 2017

Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, recorded a net income of P22.8- billion in 2016, reflecting an 5% increase from last year’s P21.7-billion. The conglomerate’s performance was buoyed by the continued improvement in operating efficiencies across all companies as consolidated revenues stood flat at P139.7-billion. Net income attributable to common shareholders reached P14.8-billion, up 6% from its level a year ago. “Since about three-to-four years ago, the Group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” says Kingson U. Sian, president, AGI.

Though still in a consolidation phase, the strategy has already allowed AGI a number of accomplishments. Megaworld now has 22 mixed-use developments all over the Philippines, spanning about 3,700 hectares. It has also expanded its office and commercial leasing businesses which now contributes to about half of its operating profits, providing the company with earnings stability. Emperador’s flagship product, Emperador Brandy, is now being marketed in 51 countries, making its way to become a global brand. This followed the acquisition of Whyte and Mackay in 2014 and Bodegas Fundador in 2015, which added quality and well-known Scottish whisky brands and Spanish brandy products in the portfolio, as well as access to over 100 markets across the globe. Travellers International’s Resorts World Manila, likewise, has maintained its position as a popular tourist destination with its diversified non-gaming amenities and attractive entertainment offerings. Even McDonald’s operations under Golden Arches aggressively expanded its stores nationwide, providing a significant boost to its profitability.

Megaworld, AGI’s property arm and the country’s leading proponent of the Live-Work-Play-Learn communities, posted a 12% year-on-year growth in core net income to P11.6-billion in 2016. Consolidated revenues rose 4% to P46.8-billion, driven mainly by its leasing operations which posted a strong 15% increase in revenues to P10-billion. About 60% of its rentals were contributed by its office segment which ended the year with 851,000 sqm in gross leasable area, reaffirming Megaworld’s position as the largest office developer and lessor in the country.

Emperador, the world’s largest brandy company, recorded a healthy 11% improvement in net income to P7.7-billion in 2016 on revenues of P41-billion. We trace the company’s strong performance to ongoing cost efficiencies given its fully integrated operations, bringing its gross profit margin to a record level of 37% last year. Of total revenues, the brandy business through Emperador and Fundador accounted for P30-billion, while the balance of P11.5-billion was contributed by its whisky business through Whyte and Mackay. Travellers chalked up EBITDA growth of 4% year-on-year to P6.4-billion as it reported gross revenues of P27.5-billion. Gross gaming revenues reached P23.6-billion, helped by the steady growth in non-VIP segment and higher win rate. Meanwhile, non-gaming revenues from its hotel operations, F&B, shopping mall and other income grew 10% to P3.8-billion. The Marriott West Wing, which became operational in November last year, added another 228 rooms, bringing to 1,454 its total hotel room count.

Golden Arches Development Corporation, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, posted a record level in revenues and profit of P22.6-billion and P1.2-billion, respectively. The robust growth in earnings was driven by the 7% improvement in systemwide same-store-sales growth, cost efficiencies and ongoing store expansion. The company ended the year with total 520 operating stores throughout the country, compared to the 481 stores in the previous year. “Despite our aggressive expansion strategy, our balance sheet remains healthy and financial gearing still very comfortable, with much room to take on new opportunities that may come our way,” says Sian.