MANILA — Alliance Global Group Inc. (AGI) chalked up a strong performance in the first half of 2024, following a resurgence in activities across all business segments in the second quarter. The conglomerate led by tycoon Andrew Tan ended the first six months of 2024 with consolidated revenue of P107.5-billion, 8% higher from P99.1-billion the year before. Pre-minority income stood at P13.8-billion, while net profit to owners reached P8.8-billion.
In the second quarter, AGI saw a sustained rise in contribution from its real estate and quick service restaurants businesses, underpinned by resilient consumer spending. The Group also benefited from a sharp recovery in spirits demand in the global market, coupled with improved activities from its leisure and tourism arm after a sluggish start. Consolidated revenue grew by 16% year-on-year (YoY) or 12% quarter-on-quarter (QoQ) to P56.8-billion, hiking AGI’s net income to P7.2-billion. Attributable profit amounted to P4.6-billion over the same period.
“The Alliance Global Group mustered a strong recovery in the second quarter of the year despite the generally sluggish global economy, as well as the challenges brought about by elevated inflation, interest rates and an unstable currency,“ says Kevin L. Tan, President and Chief Executive Officer of AGI.
“Our performance mirrored the underlying strength of our brands and all our businesses as the Group continued to invest in future capacity expansions and execute our strategies as planned. We also focused on implementing enhancements and innovations of our aspirational products and services to address changes in market preferences. We believe that we are in the best position to take advantage of emerging opportunities as the economy continues to recover,” reveals Tan.
Megaworld, the country’s premier township developer, continued to lead the Group’s performance in the first half of the year as it registered a 22% increase in revenue to P39.1-billion from P32.0-billion a year ago. This was driven by the accelerated improvement in residential project completion which led to a 30% growth in real estate sales to P24.8-billion. Sales reservation during the same period reached P68.5-billion, bringing it closer to achieving its full year target of P145-billion. Megaworld Lifestyle Malls delivered P3.0-billion to group revenue, reflecting a 19% improvement, supported by increased foot traffic and a record occupancy rate of 93%. Megaworld Hotels & Resorts also contributed P2.4-billion in revenue, 38% higher YoY, helped by rising staycation and MICE (Meetings, Incentives, Conferences and Exhibitions) activities across its hotel chain throughout the country. Meanwhile, Megaworld Premier Offices managed to post a steady 1% rise in office rental income to P6.3-billion, helped by new leases which brought its occupancy rate to 87%, way above industry average. Megaworld’s attributable net income rose by 9% to P8.6-billion from P7.9-billion the year before.
Emperador, the biggest global brandy producer and amongst the fastest-growing Scotch whisky manufacturers, turned in a robust growth in spirits sales in the second quarter of 2024, driven by the recovery in demand for both its brandy and whisky products, particularly in the Asia Pacific region, Latin America and Travel Retail. In the second quarter, Emperador saw its consolidated revenue increase by 18% QoQ to P15.5-billion, as whisky sales jumped by 27% while brandy sales rose by 12% over the same period. The stronger topline performance helped keep its gross and net profit margins stable compared with the previous quarter. Meanwhile, attributable net income stood at P2.1-billion, reflecting a growth of 19% QoQ, despite increases in input costs, marketing expenses, depreciation and interest charges. The second quarter recovery also helped lift Emperador’s performance in the first semester of 2024, bringing consolidated revenue to P28.6-billion and net income to owners to P3.8-billion.
Travellers International, the Group’s leisure and tourism arm and owner/operator of Newport World Resorts (NWR), also recorded a significant improvement in overall performance in the second quarter of 2024. During the period, gross revenues increased by 17% QoQ to P10.9-billion, largely due to the sharp 20% QoQ expansion in gross gaming revenues, while its non-gaming segment (mainly from its hotels and retail operations) sustained a revenue growth of 8% QoQ on higher average hotel occupancy of 84% and as the NWR complex broke a new record in average daily footfall, hitting 44,000 visitors. This allowed for a 38-fold QoQ increase in attributable income in the second quarter to P423-million. In the first half, net income to owners of Travellers stood at P434-million on gross revenues of P20.1bn.
GADC has sustained its healthy sales growth in the first half of the year, with total revenues increasing by 14% YoY to P23.0-billion, buoyed mainly by its ongoing product enhancements and promotions such as its “Juicier and tastier burgers” and “Better Chicken McDo”. McDonald’s Philippines, the country’s most dynamic quick service restaurant operator, also benefited from its wider network of 755 stores nationwide as at end-June. Despite mounting cost pressures, the company managed to keep its overall margins stable, prompting its attributable income to reach P1.1-billion, an increase of 11% YoY.
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.
