Alliance Global Group Nets P20 Billion from January to September 2024

Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) achieved a net income of P20 billion during the first nine months of the year as its consolidated revenues expanded to P161.6 billion from P150.4 billion during the same period last year. Attributable profit stood at P13 billion.

During the third quarter of 2024, AGI’s net income reached P6.2 billion as consolidated revenues grew to P54.1 billion. Attributable profit during the quarter stood at P4.2 billion, reflecting a 14% year-on-year (YoY) increase.

“AGI’s healthy topline performance in the first three quarters of the year was largely driven by significant increases in residential sales in the real estate business, coupled with rising contribution from its hospitality segment and quick-service restaurants. The growth was achieved despite challenges brought about by generally elevated inflation and weaker global economy,” says Kevin L. Tan, president and chief executive officer, AGI.

Megaworld, the country’s premier township developer and the biggest contributor to Group performance, realized a robust 14% improvement in net income in the first nine months of the year to P13.7 billion from P12.0 billion the year before. The company’s consolidated revenue grew sharply by 23% YoY to P59.8 billion, boosted by stronger real estate sales, as well as the sustained improvement in the contribution from its hotel and mall operations, while office rentals remained steady.

The residential revenues, which accounted for 68% of total, improved by 30% YoY to P37.8 billion, buoyed by strong real estate sales and heightened project completion. Sales reservations during the same period stood at P102 billion, driven by attractive big-ticket projects that catered mainly to the mid- to high-income segments of the residential market.

The Megaworld Lifestyle Malls continued to grow at a healthy clip of 16% YoY to P4.5 billion, helped by increasing foot traffic, high occupancy rates and improving tenant sales. Revenue of Megaworld Hotels & Resorts also expanded by 38% YoY to P3.6 billion, supported by increased domestic tourism activities and the contribution from its new hotels. Megaworld Premier Offices also posted a stable 2% YoY improvement in office rental income to P9.6 billion on occupancy of 87%.

Emperador, the biggest brandy company in the global market and amongst the fastest-growing Scotch whisky manufacturers in the world, saw its consolidated revenue in the first three quarters of the year reach P43.2 billion. The Brandy segment was affected by the general weakness in demand in key markets like Spain, Mexico and the Philippines, with consumers shifting to value brands, but Latin America and North America continued to be stable markets. Meanwhile, the Scotch Whisky segment was weighed down by the tough trading situation in China and in the US which impacted category sales in the Asia-Pacific and North American regions. However, sales in Latin America, Middle East/Africa and Global Travel Retail continued to forge ahead. Attributable profit stood at P4.8 billion.

Travellers International, the Group’s leisure and tourism arm and owner/operator of Newport World Resorts, recorded total gross revenues of P29.7 billion in the first nine months of the year. This was supported by the sustained rise in tourism and MICE activities which have allowed hotel and other revenues to grow by 9% YoY to P5.4 billion. On the other hand, gross gaming revenues hit P24.3 billion amid increasing contribution from the mass segment while the significant expansion in VIP rolling volume cushioned the impact of lower hold rate. EBITDA over the same period stood at P6.1 billion, bringing attributable net income to almost P0.5 billion.

GADC, the country’s most dynamic quick-service restaurant operator, posted total sales revenue of P34.6 billion in the first nine months of 2024, reflecting a 12% increase from P30.7 billion the year before, supported by its ongoing store expansion program, as well as its creative product offerings and pricing. However, increased inventory and personnel costs brought its attributable profit during the nine-month period to P1.23 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 764 stores nationwide.

“Despite some macro headwinds and a highly competitive landscape, we continue to look at the last quarter of the year with renewed optimism. We believe the seasonal holiday spending, alongside a period of monetary easing, could provide significant opportunities to allow the Group to finish on a strong note,” 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 Alliance Global-Infracorp Development, Inc.