Andrew Tan’s Alliance Global netted P16.1B in 2022
MANILA -Billionaire Andrew Tan’s flagship conglomerate Alliance Global Group Inc. (AGI) said revenues in 2022 surged to a historic high as pandemic woes dissipated. Rising costs, however, weighed on the bottom line.
The company said in a stock exchange filing on Thursday total revenues last year jumped 20 percent to P183.6 billion, bolstered by record sales at its liquor and fast food units.
AGI, whose portfolio also spans real estate, casinos and infrastructure, said profit margins were hit by “increased inflationary pressures, higher cost of raw material and ongoing distribution bottlenecks pushed overall costs and expenses to grow at a faster pace.”
Thus, net income last year dropped 4.7 percent to P16.1 billion. AGI has recovered about 90 percent of prepandemic profit of P17.7 billion in 2019.
“As we face a challenging global and domestic macro environment, our group remains optimistic of our growth prospects this year, armed with the belief that our sound business strategies, competitive positioning and healthy financial standing will continue to bear us through as we move forward,” Kevin L. Tan, CEO at AGI, said in a statement on Thursday.
AGI owns property giant Megaworld Corp., global hard liquor company Emperador Inc., casino operator Travellers International Hotel Group Inc. and Golden Arches Development Corp., which owns McDonald’s Philippines.
Tan said all their businesses saw “sharp recovery” in 2022 as the economy reopened and most pandemic restrictions were lifted.
“Our spirits, gaming and entertainment, as well as [quick service restaurant] units have registered unprecedented levels of revenue last year, driven by their respective strong brand equity and effective marketing strategies,” Tan said.
“Our real estate business also performed mostly above its peers, particularly in terms of keeping office rentals steady, higher-than-industry occupancy rates for its offices and hotels, and robust residential pre-sales,” he added.
Megaworld saw revenues in 2022 jump 17 percent to P59.5 billion on strong growth across real estate, malls, offices and hotels.
Reservation sales, an indicator of future revenues, also reached P119 billion as the developer rolled out P45 billion worth of projects last year.
Emperador, the world’s biggest brandy producer, ended the year with a net income of P10.1 billion versus P10.8 billion in 2021. Revenues during the period rose 12 percent to a record P68.2 billion.
“Even as it is already coming off a high base, international whisky revenues grew another 18 percent year-on-year, contributing 35 precent of group total, driven by the continued popularity of Whyte and Mackay’s single malt brands The Dalmore, Jura and Tamnavulin,” AGI said.
“Meanwhile, Emperador Brandy, which has maintained its dominance in the domestic brandy market, registered a 9-percent improvement in revenues,” it added.
Golden Arches said earnings were lifted by higher sales after store dining restrictions during the global health crisis were lifted in early 2022.
Golden Arches, a venture between AGI and fast food tycoon George Yang, holds the exclusive franchise to operate McDonald’s restaurants in the Philippines.
Last year, the company reported historic high sales of P34.4 billion, up 38 percent. Profits doubled to P1.8 billion despite “challenges brought about by higher raw material costs and operating expenses.”
Systemwide sales grew 38 percent while same store sales growth, which removes the contribution of new branches, jumped 31 percent. McDonald’s Philippines closed the year with 704 outlets across the country.
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