AGI drawing near prepandemic mark with 2021 profit up 92%

Alliance Global Group Inc. (AGI), the flagship holding company of billionaire Andrew Tan, nearly doubled profits in 2021 with the rapid recovery of business segments and the imposition of cost controls during the second year of the global health crisis.

AGI owns property giant Megaworld Corp. and the Emperador Inc. liquor group. Other major businesses are McDonald’s Philippines and Travellers International Hotel Group Inc., the operator of the Resorts World Manila casino complex.

In a statement on Wednesday, AGI announced it closed 2021 with a net income of P16.9 billion, up 92 percent—nearing its 2019 prepandemic profit of about P17.7 billion. Total revenues during the period jumped 18 percent to P152.6 billion versus the previous year.

Kevin Tan, chief executive of AGI, said the company delivered a “sterling performance” that was aided by its diversified business portfolio.

Cost efficiency measures

Tan also pointed to improvements in overall margins due to higher revenues and “cost efficiency measures, which have remained in place.”

“We aspire to continue to resume our prepandemic growth trajectory as we move forward,” Tan said in the statement.

The casino business was left out of the earnings statement on Wednesday as AGI highlighted its property, liquor and fast-food units.

Megaworld reported a 36-percent jump in profits to P13.4 billion last year. Revenues were also up 25 percent to P50.6 billion as the company recorded higher sales.

Emperador reported a net income of P10 billion, up 25 percent, while revenues rose 6 percent to P55.9 billion.

AGI said this was “driven by the continued dominance of Emperador Brandy in the domestic brandy market, in addition to the strong international whisky and brandy sales particularly in North America, Europe and Asia.”

The company is part owner of McDonald’s Philippines via its 49-percent stake in master franchise holder Golden Arches Development Corp., a venture with businessman George Yang.

Golden Arches ended 2021 with a 26-percent increase in revenues to P24.9 billion while gross profit hit P5.4 billion, up 80 percent from the previous year. Golden Arches closed the year with 671 stores across the Philippines.