Alliance Global Group, Inc. Reported a Record-Breaking P30.3 Billion Net Income in 2023, Up 20%

The holding company of billionaire Dr. Andrew L. Tan, Alliance Global Group, Inc. (AGI), broke all records with a P30.3 billion net income in 2023, up 20% from the previous year despite increased inflation driving up overall costs and expenses. With a 21% growth from the previous year, attributable net profit reached a record high of P19.6 billion. Consolidated revenues, which had previously been P183.6 billion the year before, had grown by a strong 15% to an unprecedented P211.2 billion.

“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. 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,” says Kevin L. Tan, chief executive officer, AGI.

Quick service restaurants (QSR) are operated by Golden Arches Development Corporation (GADC), also known as McDonald's Philippines; infrastructure development is handled by Alliance Global-Infracorp Development, Inc.; leisure, entertainment, and hospitality are handled by Travellers International Hotel Group, Inc.; real estate developments are handled by the massive Megaworld Corporation; and spirits manufacturing is handled by Emperador Inc.

Megaworld, a leading developer of townships, saw a 17% growth in consolidated revenues in 2023, going from P59.5 billion to P69.7 billion. This was caused by the consistent 16% annual growth in real estate sales, the dramatic 54% and 46% increases in Megaworld Lifestyle Mall and Hotel income, as well as the 3% increase in Megaworld Premier Office leases. The economy is still recovering, and Megaworld's office spaces, malls, and hotels in Metro Manila have occupancy rates of 88%, 93%, and 67%, respectively. These figures are supported by the steady recovery in consumer spending and foot traffic. In the meantime, P73 billion worth of project launches during the year let reservation sales soar once again to P139 billion. 

In 2023, Travellers International, the Group's leisure and tourist division and the owner-operator of Newport World Resorts (NWR), set yet another record with P31.9 billion in net revenues, up 19% from the previous year. Its gross gaming revenues increased by 7% to a new high of P34.2 billion, led by the revival of tourism and meetings, incentives, conferences, and exposition (MICE) activities. These factors contributed to a remarkable 40% year-over-year growth in hotel and other revenues to P7.4 billion. EBITDA increased by 8% year over year to P8.2 billion during the same period, its highest level since 2012, despite mounting cost pressures. Also, net income increased significantly from P1.1 billion to P2.0 billion, a strong 89% increase.

The largest worldwide brandy company, Emperador, which is also one of the fastest-growing producers of Scotch whiskey, announced a 5% rise in consolidated revenues to P65.6 billion from P62.8 billion a year earlier. This was mostly due to the steady increase in whiskey sales abroad, as important markets such as Asia (primarily China), North America, and travel retail continue to see substantial growth in Whyte and Mackay's single malt brands, The Dalmore, Fettercairn, Jura, and Tamnavulin. Additionally, Emperador Brandy has continued to rule the domestic brandy market. The amount of attributed net income was P8.6 billion.

Throughout 2023, GADC maintained a robust growth trajectory at all operating levels, fueled by the ongoing recovery in consumer spending. In a long-term alliance with the George Yang Group, which has the sole franchise to run "McDonald's" restaurants in the Philippines, AGI and GADC announced record sales income of P42.8 billion, up 24% from P34.4 billion the previous year. In addition, systemwide sales increased by 22%, supported by SSSG's 15% annual growth. Despite difficulties caused by increased operating and raw material prices, the company reported an attributable profit of P2.5 billion, up from P1.8 billion the previous year. McDonald's Philippines had 740 locations nationwide at the end of the year.

“For 2024, we look forward to the much-anticipated policy rate cuts as inflation begins to ease, improving the economic and business environment with the resurgence in consumer spending, as well as demand for housing, tourism and staycation activities. Armed with our superior product offerings, AGI is well-positioned to take advantage of these enormous opportunities as they unfold,” adds Tan.