AGI profits more than doubled in 2021

Published April 27, 2022, 2:07 PM

by James A. Loyola

Alliance Global Group, Inc. (AGI), the investment arm of tycoon Andrew Tan, more than doubled its net income to P23.8 billion last year from the P10.26 billion posted in 2020.

In a disclosure to the Philippine Stock Exchange, the firm said its earnings were 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.

Alliance Global Group Inc.

Attributable net income surge 92 percent to P16.9 billion, almost reaching the pre-pandemic level, from P8.83 billion in 2020.

Consolidated revenues, on the other hand, increased by 18 percent to P152.6 billion last year from P124.56 billion in 2020.

“Despite the overall challenging business environment, AGI has delivered a sterling performance in 2021,” said AGI Chief Executive Officer Kevin L. Tan.

He noted that, “Thanks to our diversified portfolio and our agility to transform whatever adversities we faced into opportunities, and our continuous drive for operating efficiencies.”

“Our overall margins improved given the hefty growth in the topline, coupled with our cost efficiency measures which have remained in place,” Tan said.

During the year, AGI achieved milestones such as the P15.3 billion initial public offering of Megaworld’s real estate investment trust while Emperador has made further headways in the international market and is now looking forward to a possible dual listing with the Singapore Stock Exchange.

“Meanwhile, McDonald’s Philippines has finally turned the corner,” he added.

In 2021, Megaworld, registered a 36 percent year-on-year increase in attributable net income to P13.4 billion as consolidated revenues rose by 25 percent to P50.6 billion.

Emperador registered another record performance as normalized net profit in 2021 hit P10.8 billion, reflecting a robust growth of 35 percent from P8.0 billion the year before.

Golden Arches Development Corporation (GADC), popularly known as McDonald’s Philippines; scored a sharp 26 ercent 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 percent year-on-year rise in gross profit to P5.4 billion, helped further by improved operating efficiencies.

“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,” said Tan.