TAN-LED Alliance Global Group, Inc. (AGI) announced on Thursday that it is hiking its capital spending to P60 billion this year, 33% higher than the previous year as it “strengthens and expands existing businesses to achieve and surpass pre-pandemic levels.”
“We are a conglomerate in motion. We believe that with the sectors we are in, we will very much benefit from pent-up spending resulting from the further reopening of the economy,” AGI Chief Executive Officer Kevin L. Tan said.
Of the total spending, P50 billion will be allocated for real estate arm Megaworld Corp.’s development and investment activities. AGI announced that Megaworld will be launching 14 new projects valued at P30 billion this year.
“The company also intends to launch about four townships during the year, covering some 500 hectares of land in Metro Manila, Calabarzon and Mindanao, which will provide the fresh source of revenue for the company moving forward,” it added.
The balance of the capital expenditure will be distributed to its other businesses, namely: Travellers International Hotel Group, Inc., Emperador, Inc., and Golden Arches Development Corp.
Approximately P4 billion will be designated for Travellers International’s ongoing expansion projects, primarily in leisure and entertainment.
The firm said that its entire Newport City complex is now open to MICE (meetings, incentives, conferences, and exhibitions) activities and its hotels — Marriott Manila, Sheraton Manila, Hilton Manila, and Hotel Okura Manila — are continuing to accept more guests as mobility restrictions ease.
On the other hand, around P3 billion will be set aside for Emperador’s ongoing expansion projects overseas.
“Since the pandemic, Emperador continued to grow from strength to strength, driven by its international operations through Whyte and Mackay for whisky, and Bodegas Fundador for brandy,” AGI said.
The remaining P3 billion will be spent by Golden Arches, which holds the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand. It is planning to further expand its store network by launching 45 stores this year.
“Our group anchored itself on stability and recovery over the last two years of grappling with the impact of the pandemic. We have since focused on renewal and revitalization — both pointing to our upbeat, more confident view of the future. This shift in mindset would not have been possible without the insights and innovations derived from such challenging times, and the affirmation that our businesses continued to stand on strong ground,” Mr. Tan added.
In the first quarter, AGI reported its net income to owners jumped by 52% to P3.9 billion. Consolidated revenues likewise grew by 18% to P37.5 billion.
At the stock exchange on Thursday, AGI shares dropped by 3.68% or 36 centavos to P9.43. — Luisa Maria Jacinta C. Jocson