AGI posts PHP 24.8B nine-month profit, up 24%

Alliance Global Group Inc. (AGI), the conglomerate led by Dr. Andrew L. Tan, posted a 24 percent year-on-year increase in net income to PHP 24.8 billion in the first nine months of 2025, as consolidated revenue reached PHP 143.4 billion.

The growth includes a one-time gain of PHP 3.4 billion from the deconsolidation of Golden Arches Development Corp. (GADC), its quick-service restaurants arm, which AGI now treats as an associate while retaining a 49 percent stake.

As a result, AGI’s attributable profit surged 34 percent year-on-year to PHP 17.4 billion.

Even excluding one-off items, AGI’s core net income rose 10 percent to PHP 21.2 billion, driven by steady contributions from office, malls, residential, and hospitality segments.

Core attributable net profit reached PHP 13.9 billion, an 8 percent improvement from the same period last year.

“AGI’s robust performance in the first three quarters of the year is largely due to our diversified business portfolio and product mix. During the period, we saw a sequential improvement in office and mall rentals, and steady contribution from our residential and hospitality segments,” said Kevin L. Tan, president and CEO of AGI.

“Despite global economic challenges, our spirits business has managed to gain traction in the international market,” he added.

“What provided an added lift in Group earnings and margins is our ongoing cost management efforts, which we implemented across the business. As we build a culture of cost awareness, we hope to further enhance our operating efficiencies moving forward,” Tan said.

Megaworld Corporation remained AGI’s largest contributor, with a net income of PHP 15.9 billion — up 16 percent from PHP 13.7 billion in 2024.

Megaworld’s consolidated revenue rose 8 percent to PHP 64.4 billion, supported by strong gains in office leasing, mall operations, hotel revenues, and residential sales.

Rental income from Megaworld Premier Offices grew 16 percent year-on-year to PHP 11.1 billion, backed by stable 87 percent occupancy and consistent rent escalations.

The firm also closed several new leases, maintaining its market leadership in the Philippine office sector.

Megaworld Lifestyle Malls posted PHP 5.1 billion in revenue, up 13 percent year-on-year, aided by rising tenant sales, increased foot traffic, and a 93 percent occupancy rate.

Megaworld Hotels & Resorts saw a 13 percent increase in revenue to PHP 4.1 billion, attributed to an expanded room inventory and double-digit growth in average daily rates.

The company’s residential segment recorded PHP 40.2 billion in revenue — a 6 percent year-on-year increase — driven by demand from the upper-mid to high-end housing markets.

Emperador Inc., AGI’s global liquor arm, recorded PHP 41.2 billion in consolidated revenue, supported by a diverse product range and global distribution network spanning over 100 countries.

The Brandy segment contributed PHP 26.3 billion in revenue, up 5 percent year-on-year, led by Fundador brandy’s strong presence in Spain, Mexico, and the Philippines.

The Scotch Whisky segment generated PHP 14.9 billion in revenue, as its single malt labels — The Dalmore, Jura, and Tamnavulin — gained stronger traction globally.

Emperador posted PHP 4.7 billion in attributable net income in the first three quarters of the year.

Travellers International Hotel Group, Inc., AGI’s tourism and leisure arm, posted gross revenue of PHP 28.6 billion, driven by increased foot traffic at the Newport World Resorts complex.

Gross gaming revenue (GGR) amounted to PHP 23.5 billion, while non-gaming income from hotels, food, and beverage reached PHP 5.1 billion.

In the third quarter alone, GGR rose 7 percent quarter-on-quarter, as both VIP and mass segments showed improved performance.

Travellers’ attributable net income jumped 31 percent year-on-year to PHP 651 million, bolstered by continued cost efficiency measures.

AGI’s diversified holdings span real estate through Megaworld, spirits manufacturing via Emperador, tourism and entertainment under Travellers International, and quick-service restaurants through its stake in McDonald’s Philippines operator GADC.