TAN-LED Alliance Global Group Inc. (AGI) on Thursday said it was allocating P75 billion for capital expenditures (capex) this year — up 19 percent from last year’s P63 billion — to sustain its standing as a premium lifestyle conglomerate.
Megaworld Corp. will be given the biggest chunk at P55 billion, followed by Travelers International Hotel Group Inc., at P10 billion. Emperador Inc. and Golden Arches Development Corp., meanwhile, will get P6.5 billion and P4 billion, respectively.
“AGI remains steadfast and dedicated to driving growth across all its business segments, mindful of its goal to elevate global consumer preferences through aspirational product offerings,” AGI President and Chief Executive Officer Kevin Tan told stockholders on Thursday.
The conglomerate’s interests span real estate developments via Megaworld, spirits through Emperador, leisure, entertainment and hospitality under Travelers, and quick service restaurants through Golden Arches that holds the Philippine franchise of McDonald’s.
Tan said the tourism sector was recovering and could surpass pre-pandemic levels.
“The AGI group continues to expand its offering in the hospitality sector, with a plan to bring its total hotel room keys to around 12,000 in the next few years, from its 20 to 23 capacity of around 7,500 keys,” he told the stockholders.
Tan added that a P1.5-billion development, the Mactan Expo Center in Mactan Newtown Township in Cebu, would soon open and that more locations for MICE (meetings, incentives, conventions and exhibitions) activities were being developed.
Megaworld intends to expand its real estate portfolio to 35 townships this year, launching new developments, majority of which are outside of Metro Manila. Megaworld is also set to develop lifestyle malls in Boracay, Cavite and Pampanga, and office buildings in Iloilo City, Bacolod and Pampanga.
Emperador’s capex will be used for its ongoing expansion of whisky operations under Whyte and Mackay, while Golden Arches will use its portion to expand its store network to bring Mcdonald’s stores number to 800 this year.
AGI’s consolidated revenues in 2023 grew 15 percent, to P211.2 billion, with an attributable profit of P19.6 billion, or 21-percent increase year on year.
AGI shares rose by 1 centavo to P8.97 apiece on Thursday.
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