AGI earmarks P63 billion for 2025 capex

MANILA, Philippines — Alliance Global Group Inc. (AGI) of tycoon Andrew Tan is set to spend P63 billion in capital expenditures this year to support the continued expansion of its various subsidiaries.

Of the 2025 capex budget, P50 billion has been allocated to real estate unit Megaworld, which is targeting P20-billion worth of project launches and P130 billion in reservation sales this year.

Leisure and tourism arm Travellers International Hotel Group Inc. and McDonald’s Philippines franchise holder Golden Arches Development Corp. (GADC) will spend around P5 billion each. At the same time, Emperador, the biggest brandy company in the global market, will invest P4 billion.

AGI’s capex spent in 2024 amounted to P68 billion, 91 percent of the P75 billion allocated budget for the year.

Last year, AGI finished with an attributable net profit of P17.2 billion, down by 12 percent from the previous year’s P19.6 billion, as rising costs tempered strong top-line performance.

The group’s revenues, however, rose by six percent to P223.6 billion from 2023’s P210.8 billion, driven by its real estate, hospitality and quick-service restaurant segments.

AGI said that Megaworld remained the primary revenue and earnings driver, bolstered by significant improvements across all segments.

Megaworld contributed record-high revenues of P81.3 billion, up by 17 percent from the previous year’s P69.3 billion as each business segment posted robust results.

Travellers’ revenue contribution stood at P31.7 billion, up by one percent year-on-year, as the business benefited from strong growth in non-gaming and mass gross gaming revenues.

GADC maintained solid sales growth, driven by network expansion, resulting in a 12-percent revenue jump to P48.3 billion.

Emperador, however, faced global headwinds that affected international spirits, coupled with challenges in the domestic market.

As a result, its revenues slipped by six percent year-on-year to P61.3 billion.