Andrew Tan’s AGI profit up 132% to P23.8-B in 2021

The Andrew Tan-led Alliance Global Group, Inc. (AGI) more than doubled its net income last year to P23.8-billion year-on-year, bolstered by the resurgence in activities across all of its business segments with the reopening of the economy towards the latter part of the year.  Net income to owners, likewise, soared 92% year-on-year to P16.9-billion, almost reaching the pre-pandemic levels.

Consolidated revenues, on the other hand, increased by 18% year-on-year to P152.6-billion.

“Despite the overall challenging business environment, AGI has delivered a sterling performance in 2021. Thanks to our diversified portfolio and our agility to transform whatever adversities we faced into opportunities, and our continuous drive for operating efficiencies,” says Kevin L. Tan, chief executive officer, AGI.

AGI has varied interests spanning real estate developments through property giant Megaworld Corporation; spirits manufacturing through Emperador Inc.; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; quick service restaurants through Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines; and infrastructure development through Infracorp.

“Our overall margins improved given the hefty growth in the topline, coupled with our cost efficiency measures which have remained in place.  During the year, the Group also achieved many milestones.  Megaworld has launched its Philippine REIT platform through MREIT Inc. which successfully undertook its P15.3-billion initial public offering and listing in October. Emperador has posted another record earnings performance in 2021.  Meanwhile, McDonald’s Philippines has finally turned the corner,” explains Tan.

In 2021, property giant, Megaworld, registered a 36% year-on-year increase in attributable net income to P13.4-billion as consolidated revenues rose by 17% to P50.8-billion.  Its topline benefited from a sharp 25% recovery in real estate sales as quarantine restrictions eased, allowing for higher project completion. Megaworld Premier Offices sustained a 6% improvement in office rentals amid stable occupancy rates of 90% supported by the overall resilient outsourcing sector.  Revenues from Megaworld Lifestyle Malls and Megaworld Hotels & Resorts, likewise, rebounded sharply in the fourth quarter, buoyed by increased mobility with the further reopening of the economy.

Emperador, the world’s biggest brandy producer and one of the world’s largest Scotch whisky manufacturers, registered another record performance as normalized net profit in 2021 hit P10.8-billion, reflecting a robust growth of 35% from P8.0-billion the year before.  Consolidated revenues went up by 6% year-on-year to P55.9-billion, 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 even amidst the global pandemic and despite logistical challenges.

GADC scored a sharp 26% year-on-year improvement in sales revenues to P24.9-billion in 2021 driven by pent-up customer sales and traffic as the market welcomed the gradual reopening of the economy.  The company recorded a significant 80% year-on-year rise in gross profit to P5.4-billion, helped further by improved operating efficiencies.  GADC, a strategic partnership between AGI and the George Yang Group that holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand, closed the year with 671 stores throughout the country.

“Even as we face a number of hurdles in the global and domestic macro environment, our Group remains optimistic on our prospects ahead as we anchor our growth on our strong brand equity, firm market positioning, focused strategies and overall financial strength.  We aspire to continue to resume our pre-pandemic growth trajectory as we move forward,” concludes Tan.