Alliance Global Group Inc., the investment holding company of tycoon Dr. Andrew Tan, said Thursday net profit last year declined 4.7 percent, with rising cost and distribution bottlenecks hobbling gains from record revenue from trickling down to the bottom line.
The listed investment holding company of tycoon Dr. Andrew Tan said net profit in 2022 declined to P16.1 billion from P16.9 billion in 2021 even as revenues surged 20 percent to a record P183.6 billion.
However, increased inflationary pressures, higher cost of raw material and ongoing distribution bottlenecks pushed overall costs and expenses to grow at a faster pace, the company said.
It added that 2021 group results included significant extraordinary items booked under its gaming unit, which if netted out should reflect a growth of 27 percent year-on-year in AGI’s core profit, while core attributable income should show a 7 percent improvement from the year before.
“The country’s sustained economic recovery helped propel the sequential topline improvement of all our business segments last year, leading to our record performance in consolidated revenues in 2022. It also helped that our Group’s diversified portfolio has remained agile to spot and seize opportunities in the market place.”
Kevin Tan, AGI chief executive officer
AGI’s business interests includes real estate developments through Megaworld Corp.; spirits manufacturing through Emperador Inc.; leisure, entertainment and hospitality through Travellers International Hotel Group, Inc.; quick service restaurants through Golden Arches Development Corp., popularly known as McDonald’s Philippines; and infrastructure development through Infracorp.
“All our businesses exhibited a sharp recovery in 2022. Our spirits, gaming and entertainment, as well as QSR units have registered unprecedented levels of revenue last year, driven by their respective strong brand equity and effective marketing strategies. Our real estate business also performed mostly above its peers, particularly in terms of keeping office rentals steady, higher-than-industry occupancy rates for its offices and hotels, and robust residential pre-sales,” Tan said.
