Alliance Global Group Inc. (AGI), the conglomerate led by billionaire Andrew Tan, is scaling back capital expenditure this year to ₱63 billion, a 7 percent drop from last year’s ₱68 billion as it navigates rising costs and economic headwinds.
Despite the tighter budget, AGI is maintaining strong investment in its core property unit, Megaworld Corp., which will receive ₱50 billion — nearly 80 percent of total capex — though slightly down from ₱51 billion in 2024. The developer remains AGI’s main revenue and earnings driver, the company noted.
The liquor business, Emperador Inc., sees a sharper cut in funding, down 50 percent to ₱4 billion, amid margin pressures from global and domestic market challenges. Emperador is, however, moving ahead with strategic international expansion, including a major scale-up of its Invergordon Distillery in Scotland, aiming to double its footprint and build 120 new warehouses for 1.5 million additional casks.
Travellers International Hotel Group Inc. and Golden Arches Development Corp. (operator of McDonald’s Philippines) will each receive ₱5 billion. Travellers is pushing forward with premium tourism infrastructure such as the Narra Palm Hotel and Villa in Boracay, while Golden Arches plans to open 65 new McDonald’s stores after ending 2024 with 792 branches.
AGI posted a 12 percent decline in full-year 2024 net income to ₱17.2 billion, despite a 6 percent revenue rise to ₱223.6 billion, citing elevated costs and squeezed margins across several segments. Fourth quarter profit was flat at ₱4.3 billion, though revenues rose 15 percent to ₱62 billion.
“We are looking at 2025 with cautious optimism,” AGI said, highlighting continued capital deployment across real estate, hospitality, spirits, and quick-service restaurants. Megaworld plans to launch ₱20 billion worth of new projects in 2025, sharply down from last year’s ₱31.8 billion, as it eyes more calibrated growth with a reservation sales target of ₱130 billion.
As AGI adopts a more conservative investment approach, its strategic allocation underscores a focus on long-term growth in property and tourism, while bracing for margin volatility in consumer and international markets.
