Tycoon Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI) ended last year with a record-high net profit of P23.7 billion, up by 6.3 percent from the restated earnings in 2017, on higher earnings from its property, integrated gaming resort and liquor businesses.
Consolidated revenues last year grew by 14 percent to P160.7 billion, AGI disclosed to the Philippine Stock Exchange on Monday.
The net profit level of P23.7 billion for 2018 includes earnings attributable to minority interest.
“This is a milestone performance for AGI and proves that our aggressive expansion strategies which we started implementing across our various business segments about five years ago have begun to bear fruit. Now, all our major business segments are contributing strongly to the group’s growth. We look forward to sustaining this momentum in the coming years,” AGI chief executive officer Kevin Tan said.
The group adopted the accounting changes under Philippine Financial Reporting Standards 15 for its 2018 financial statements, resulting in the restatement of previous year’s performance for comparability.
AGI’s key operating units are real estate firm Megaworld Corp., global liquor subsidiary Emperador Inc., gaming and leisure operations under Travellers International Hotel Group Inc., quick service restaurants business through McDonald’s Philippines under Golden Arches Development Corp., and infrastructure arm Infracorp Development Inc.
“We remain unrelenting in our expansion plans as we view with optimism the country’s economic prospects despite some temporary challenges. We are allocating around P85 billion in capex (capital expenditure) this year, a significant increase from the P70 billion in actual expenditures in 2018. About 90 percent of this year’s budget will fund the healthy expansion projects of Megaworld and Travellers,” said Tan. —DORIS DUMLAO-ABADILLA