Alliance Global sets P63-billion capex for 2025

AGI is ramping up capital spending after seeing its bottom line drop.

MANILA, Philippines — Alliance Global Group Inc. (AGI) plans to spend P63 billion this year, mostly to expand its real estate portfolio, its main income driver.

This is 7.4 percent lower than AGI’s capital expenditure of P68 billion last year after the group posted lower profit.

In 2024, AGI saw its net income fall by 12 percent to P17.2 billion. This was due to higher costs and weakness in brandy unit Emperador Inc. and leisure arm Travellers International Hotel Group Inc.

The company’s top line, meanwhile, rose by 6 percent to P223.6 billion.

Megaworld Corp. remained the group’s main income and revenue source, contributing 68 percent and 37 percent, respectively.

Last year, the real estate firm booked an 8-percent climb in its earnings to P18.7 billion. 

Consolidated revenues reached an all-time high or P81.7 billion, up by nearly a fifth.

This was mostly driven by stronger real estate sales and “efficient cost management,” AGI said in a disclosure.

Coming second was Emperador, which accounted for 28 percent of group revenues and 27 percent of earnings.

Emperador’s net income last year slipped by 27 percent to P6.3 billion. This was due to softer demand for spirits, as well as domestic and global macroeconomic challenges.

AGI, led by billionaire Andrew Tan, said P50 billion of the group’s total budget would go to Megaworld.

This year, Megaworld is looking to launch P20 billion worth of projects and generate P130 billion in reservation sales.

Project pipeline

Its pipeline consists of 139,000 square meters (sqm) of office space and 151,000 sqm of mall space until 2026. Also included are 3,550 additional hotel rooms until 2029.

Meanwhile, Travellers, the owner and operator of Newport World Resorts, will get P5 billion from the budget pie.

This will be used mainly to expand its existing projects. These include Boracay Newcoast in Aklan, Mactan Newtown in Cebu and the newly opened Westside City in Parañaque City.

Travellers’ profit last year fell by 38 percent to P1.2 billion due to lower gross gaming revenues.

READ: Emperador takes over premium liquor maker in Mexico

Emperador will spend around P4 billion to support the expansion of its Invergordon Distillery in Scotland.

The facility, which is operated by subsidiary Whyte and Mackay, will have its footprint doubled to 92 hectares. Emperador also plans to build 120 new warehouses “in the coming decades” to accommodate 1.5 million casks.

Earlier, Emperador warned that the global trade war may impact its whisky business.

Currently, Emperador exports whisky to the United States via Whyte and Mackay, which also operates the high-end brand Dalmore.

US President Donald Trump has imposed a 10-percent baseline duty on all goods coming from the United Kingdom.

McDonald’s franchise

Golden Arches Development Corp. (GADC), the master franchise holder of McDonald’s in the Philippines, will get around P5 billion. This is mostly to put up 65 new branches across the country and move closer toward the 800-store mark.

McDonald’s ended 2024 with 792 stores in its network.

GADC, through the Yang family, recently renewed its 20-year franchise to run  the global fast-food giant in the Philippines.

This allows the company to operate and sub-franchise McDonald’s in the Philippines until 2045.

Higher input and advertising costs resulted in an 8-percent decline in GADC’s net income last year to P2.4 billion.

Meanwhile, sales revenues reached a record P47.9 billion, up by 12 percent due to the company’s expanded footprint.