ALLIANCE GLOBAL Group, Inc. (AGI) has set a P63-billion capital expenditure (capex) budget for 2025, lower than the P68 billion spent in 2024, following weaker performance that year, the company said on Tuesday.
Of the total capex for this year, P50 billion is allocated to listed property developer Megaworld Corp., while P5 billion is earmarked for hotel operator Travellers International Hotel Group, Inc., AGI said in a regulatory filing.
The conglomerate added that P5 billion is for McDonald’s Philippines operator Golden Arches Development Corp. (GADC), with the remaining capex allocated to listed brandy and whisky producer Emperador, Inc.
For 2024, AGI saw a 12% drop in attributable profit to P17.2 billion from P19.6 billion in 2023 due to rising costs.
Total revenue rose by 6% to P223.6 billion from P210.8 billion in 2023. Megaworld accounted for 37% of revenue, followed by Emperador at 28%, GADC at 22%, and Travellers at 14%.
“Strong topline performance buoyed by real estate, hospitality, and quick service restaurant (QSR) segments, although profitability was tempered by rising costs,” AGI said.
For the property business, Megaworld recorded an 8% increase in attributable profit to P18.7 billion as revenue climbed by 17% to P81.7 billion.
The real estate company aims to launch P20 billion worth of projects and secure P130 billion in reservation sales this year.
“Megaworld remained the primary driver of revenue and earnings, bolstered by significant improvements across all segments,” AGI said.
The liquor business led by Emperador posted a 27% drop in attributable profit to P6.3 billion as revenue declined by 6% to P61.6 billion.
“Emperador faced global headwinds that affected international spirits, coupled with challenges in the domestic market; elevated costs and advertising and promotion (A&P) expenses squeezed margins,” AGI said.
For the hotel segment, Travellers saw a 38% decline in attributable profit to P1.2 billion. Total gross revenue fell by 3% to P39.9 billion, while gross gaming revenue (GGR) decreased by 6% to P32 billion.
Non-gaming revenue increased by 13% to P7.9 billion.
“Travellers benefited from strong growth in non-gaming revenues and mass GGR; operating costs and expenses were generally contained,” AGI said.
In the QSR segment, GADC saw an 8% decrease in attributable profit to P2.4 billion. Systemwide sales rose by 9% to P81.4 billion, while sales revenue improved by 12% to P47.9 billion.
“GADC maintained solid sales growth driven by network expansion, but rising input costs and higher A&P compressed margins,” AGI said.
On Tuesday, AGI shares rose by 0.65% or four centavos to P6.16 apiece, while Megaworld stocks improved by 1.69% or three centavos to P1.80 per share, and Emperador shares fell by 1.44% or 18 centavos to P12.28 each. — Revin Mikhael D. Ochave
