Alliance Global Group, Inc. (AGI) has shattered expectations by achieving unprecedented financial milestones amidst a backdrop of economic challenges.

The conglomerate, led by tycoon Dr. Andrew Tan, reported a 20% year-on-year increase in net income, reaching ₱30.3 billion. Attributable net profit also reached a new peak of ₱19.6 billion, reflecting a notable 21% growth from the previous year.

Kevin L. Tan, chief executive officer of AGI. stated in a press release issued on Wednesday, April 17, that despite contending with higher inflation and escalated costs, AGI achieved an “unprecedented” milestone with its consolidated revenues hitting ₱211.2 billion, marking a 15% increase from the previous year’s ₱183.6 billion.

“2023 was a historic year for the Group as it delivered excellent performance across all of its businesses, led by its real estate, tourism and consumer segments. This was achieved even amid heightened competition in the domestic and global market, various macro challenges in some key markets, rising cost pressures and higher interest rates,” Tan said.

“Most of our businesses have forged results beyond pre-pandemic levels, even posting new highs in terms of sales, EBITDA, net profit, and all other operating metrics. Such strong performance has encouraged us to carry on with our aggressive business strategies and expansion plans across our diversified portfolio,” he added.

AGI’s varied range of investments, including real estate, tourism, spirits manufacturing, leisure, and quick-service restaurants, all contributed to driving this performance, he said.

Megaworld, the premier township developer, experienced a notable 17% increase in its consolidated revenues, climbing to ₱69.7 billion in 2023 from ₱59.5 billion the previous year.

Tan said this growth was primarily fueled by a sustained 16% year-on-year surge in real estate sales, along with remarkable recoveries in revenues from Megaworld Lifestyle Malls (up 54%) and Megaworld Hotels (up 46%).

In addition, there was a 3% uptick in rentals from Megaworld Premier Offices.

Benefiting from steady growth in consumer spending and foot traffic amid the recovering economy, Megaworld reported high occupancy rates across its office spaces (88%), malls (93%), and Metro Manila hotels (67%).

Furthermore, reservation sales surged to ₱139 billion, receiving a boost from project launches totaling ₱73 billion throughout the year.

Travellers International, the leisure and tourism arm of the Group and the operator of Newport World Resorts (NWR), also achieved milestones in 2023, with net revenues surging by 19% year-on-year to ₱31.9 billion.

This performance, he explained, was fueled by a resurgence in tourism and Meetings, Incentives, Conferences, and Exhibitions (MICE) activities, resulting in a 40% per annum increase in hotel and other revenues to ₱7.4 billion.

Gross gaming revenues reached a new high of ₱34.2 billion, representing a 7% increase.

EBITDA for the same period rose by 8% year-on-year to ₱8.2 billion, reaching its highest level since 2012, despite facing upward cost pressures. Furthermore, net income witnessed sturdy growth, soaring by 89% to ₱2.0 billion from the previous year’s ₱1.1 billion, despite facing upward cost pressures.

Tan said Emperador, their global brandy company and one of the fastest-growing Scotch whisky manufacturers, reported a 5% increase in consolidated revenues to ₱65.6 billion from the year-ago level of ₱62.8 billion.

This was due to the continuous enhancement in international whisky sales, with Whyte and Mackay’s single malt brands The Dalmore, Fettercairn, Jura, and Tamnavulin making notable progress in major markets such as Asia (particularly China), North America, and travel retail. Emperador Brandy has also sustained its leadership position in the local brandy market. Attributable net income amounted to ₱8.6 billion.

Golden Arches Development Corporation (GADC), AGI’s quick-service restaurant arm operating McDonald’s Philippines, sustained a remarkable growth trajectory with record-level sales revenue of ₱42.8 billion.

GADC sustained its strong growth trajectory in 2023 across all operating levels, driven by the continuous improvement in consumer spending. As part of a long-term partnership between AGI and the George Yang Group, which holds the exclusive franchise to operate ‘McDonald’s’ restaurants in the Philippines, GADC reported a record level of sales revenue of ₱42.8 billion.

Tan said this marked a 24% increase from ₱34.4 billion the previous year.

Systemwide sales also experienced substantial growth, expanding by 22%, supported by a solid same-store sales growth (SSSG) of 15% year-on-year.

Despite challenges stemming from higher raw material costs and operating expenses, GADC managed to achieve an attributable profit of ₱2.5 billion, up from ₱1.8 billion the previous year. McDonald’s Philippines concluded the year with 740 stores nationwide.

“For 2024, we look forward to the much-anticipated policy rate cuts as inflation begins to ease, improving the economic and business environment with the resurgence in consumer spending, as well as demand for housing, tourism and staycation activities. Armed with our superior product offerings, AGI is well-positioned to take advantage of these enormous opportunities as they unfold,” said Tan.