TAN-LED Alliance Global Group, Inc. (AGI) said on Thursday that it is increasing its capital expenditure to P60 billion this year, 33% more than the previous year, as it “strengthens and expands businesses to reach and exceed the pre-pandemic period”. levels.”
“We are a conglomerate on the move. We believe that with the sectors we find ourselves in, we will benefit greatly from pent-up spending resulting from the continued reopening of the economy,” said AGI Chief Executive Kevin L. Tan.
Of the total expenditure, 50 billion pesos will be allocated to the development and investment activities of the real estate branch Megaworld Corp. AGI has announced that Megaworld will launch 14 new projects valued at 30 billion pesos this year.
“The company also intends to launch approximately four townships during the year, covering some 500 hectares of land in Metro Manila, Calabarzon and Mindanao, which will provide a new source of revenue for the company at the future,” he added.
The balance of the capital expenditures will be distributed to its other businesses, namely: Travelers International Hotel Group, Inc., Emperador, Inc. and Golden Arches Development Corp.
Around 4 billion pesos will be allocated to Travelers International’s ongoing expansion projects, mainly in leisure and entertainment.
The company said its entire Newport City resort is now open for MICE (meetings, incentives, conferences and exhibitions) activities and that its hotels – Marriott Manila, Sheraton Manila, Hilton Manila and Hotel Okura Manila – continue to operate. accept more guests as mobility restrictions ease.
On the other hand, around 3 billion pesos will be earmarked for Emperador’s ongoing overseas expansion projects.
“Since the pandemic, Emperador has continued to grow increasingly, driven by its international operations through Whyte and Mackay for whiskey, and Bodegas Fundador for brandy,” AGI said.
The remaining 3 billion pesos will be spent by Golden Arches, which owns the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand. It plans to further expand its store network by launching 45 stores this year.
“Our group has been anchored on stability and recovery over the past two years battling the impact of the pandemic. Since then we have focused on renewal and revitalization, both of which reflect our optimistic and more confident about the future. This change of mindset would not have been possible without the ideas and innovations that came out of these difficult times, and the affirmation that our businesses have continued to stand on solid foundations” , added Mr. Tan.
In the first quarter, AGI said its net income to owners jumped 52% to 3.9 billion pesos. Consolidated revenues also increased by 18% to reach 37.5 billion pesos.
In trading on Thursday, AGI shares fell 3.68% or 36 centavos to P9.43. — Luisa Maria Jacinta C. Jocson