Alliance Global Group, Inc. (AGI), the
investment holding company of tycoon Dr. Andrew L. Tan, is allocating more than
P150-billion for this year until 2017 to finance the various expansion plans of
its companies.
“We continue to be optimistic about what
lies ahead. That is why we have kept an
aggressive capex plan moving forward. In
2010 to 2015, we spent an aggregate of PHP270 billion for our expansion
projects. We will spend more than half
of that amount for 2016 and 2017 alone, proving our positive outlook for our
business,” says Kingson U. Sian, president, AGI.
AGI maintains its highly optimistic outlook
over its long-term prospects after reporting record revenues and core profit of
PHP139 billion and PHP21.6 billion, respectively, in 2015. The company continues
to pursue heavy capex plans as it firms up the foundation for its future
growth. Earlier, AGI chair Dr. Andrew L.
Tan told stockholders that the company’s “strong operating performance in 2015
only serves to inspire us to continue to do better to accelerate our growth
trajectory and maintain our market leadership.
We have already laid out the foundation and made significant investments
across all our business segments, both here and abroad, in order to
future-proof our growth.”
“Our Group has really come a long way from
what we were before. Five years ago, our
real estate arm, Megaworld Corporation, covered only five townships, all in
Metro Manila. Now, we have 21 townships
throughout the country, of which 12 are in key growth areas in the provinces,” explains
Sian.
Megaworld continues to lead in township
development and is also the biggest developer and landlord of offices for the
country’s BPO industry. The company plans to continue expanding its office and
commercial properties nationwide to keep itself at the crest of the wave of
growth cities all over the Philippines.
“Moreover, only three years ago, Emperador,
Inc. was a pure Philippine liquor operation where it maintains market
leadership. Now, it has become a global
player in the spirits sector with access to about 100 markets around the
world. This followed our acquisition of
Whyte and Mackay, and more recently, Fundador and the other Spanish assets,” adds
Sian.
Capitalizing on its expanded global
footprint, Emperador Brandy is now being exported to 40 countries in Asia,
North America, Europe, Africa and the Middle East, reinforcing its position as
the world’s No. 1 brandy product in terms of volume.
AGI is also on-track in its expansion
program in the tourism sector with the objective of bringing its group-wide
hotel room capacity to 12,000 keys by 2020 from the current 3,000 room
keys. The additional capacity will be
coming mainly from its tourism-entertainment and gaming unit Travellers
International Hotel Group, Inc. and Global-Estate Resorts, Inc. (GERI), a
Megaworld subsidiary. Travellers is in
the midst of its massive expansion projects in Resorts World Manila.
Meanwhile, GERI is undertaking two major
tourism estate development projects in highly popular destinations: Boracay
Newcoast in Boracay Island, Aklan; and Twin Lakes in Metro Tagaytay.
Even its quick service restaurant business
through Golden Arches Development Corporation (GADC) is spending heavily to
increase its number of McDonald’s stores nationwide to ride on the overall improvement
in consumer demand. GADC is poised to
hit its 500th store this year and is looking to grow the number to 900 stores
moving forward.
“Our continued investments have given our
Group a competitive edge that is difficult to match. With all the pieces already in place, we
believe that we have set the stage for a strong long-term growth,” said Mr.
Sian.
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