Alliance Global expects sustained growth in H2

MANILA, Philippines - Holding firm Alliance Global Group Inc. (AGI) of property tycoon Andrew L. Tan said it expects to sustain its growth momentum through the latter part of the year.

AGI outlined yesterday its expansion plans for its liquor and quick-service restaurants businesses, a company executive said.

“If the economy stays the same, there’s no reason we can’t sustain (the growth),” AGI president Kingson Sian told reporters.

Sian said AGI, as a consumer-focused company, is banking on continuous improvement in job creation, consumer spending and overseas remittances.

In the first half this year, AGI’s profits hit P11.26 billion, up 34 percent from P8.41 billion a year ago due to better performance of all major businesses. Its consolidated revenues rose 19 percent to P61.08 billion from P51.19 billion.

Growth will be supported by its operating units, including the backdoor-listed Emperador Inc. and Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines.

Emperador will increase its brand presence in the south to take advantage of the untapped market.

“Obviously Visayas and Mindanao is an area for us to expand and entrench our product,” Sian said.

“Luzon and Metro Manila is our bailiwick but we’re seeing a nice growth trend south of the Philippines,” he added.

Emperador targets to double its sales volume in the next five years as it intends to corner a third of the global brandy market. The liquor maker sold 31 million cases of brandy last year, up from 21 million cases a year earlier.

Sian said Emperador aims to maintain or grow its sales for this year.

Shares of Emperador, which listed in the local bourse via Touch Solutions Inc., surged 8.38 percent to end at P11.90 yesterday following several days of voluntary trading suspension.

Sian said the backdoor listing will be used to propel Emperador for future expansion but the company has yet to chart plans for fundraising.

Early last month, Emperador committed to invest P5.8 billion in Spain as part of its plan to become a significant global brand. It earlier acquired 100 percent of Spanish brandy maker Bodega San Bruno, including the San Bruno trademark that has been registered since 1942.

For its quick-service restaurant business, AGI will keep Golden Arches private in the meantime.

“It’s still small relative to other companies. Our aim now is to grow business aggressively, to grow to a certain size,” Sian said.

The immediate goal is to reach 500 McDonald’s branches in the country from the current 380, which will be boosted by 45-50 new outlets this year, Sian said.

Aside from quick-service restaurants and liquor, parent firm AGI is also into gaming and tourism (Travellers International Hotel Group Inc.), property (Megaworld Corp.) and tourism estates (Global-Estate Resorts Inc.).