Alliance Global Group Inc. (AGI) reiterated its plan to spend P70 billion as capital expenditures for the year.
Kevin Tan, AGI chief executive officer, said the 23 percent increase in capex for the year from last year’s P56.91 billion, will “sustain the strong growth momentum of its domestic and international operations” of the group.
“AGI has been focused on delivering products and services that create a bespoke and premium lifestyle for our discerning customers. A firm believer of the country’s attractive long-term growth prospects, the Group is betting on the continued improvement in consumer spending,” said Tan during the company’s stockholders meeting.
For this year, Megaworld is spending P55 billion for its aggressive plans to expand its office, mall and hotel business segments, support the completion of P73 billion worth of projects ready for turnover in the coming months, and launch 20 new development projects this year valued at P60 billion.
“Emperador is setting aside P7 billion to fund the upgrade of its machinery and facilities here and abroad. About P6 billion of said amount will be spent to scale up the operations of its distilleries in Scotland in order to meet the growing demand for its highly popular premium single-malt whisky brands The Dalmore, Jura, Tamnavulin and Fettercairn. The balance of P1 billion will be utilized to improve the company’s brandy production facilities in the Philippines, Spain and Mexico,” Tan said.
The hospitality and gaming business under Travellers International is allocating P4 billion mainly for its ongoing expansion projects at the Newport World Resorts complex. The company aims to sustain the strong growth in its gross gaming revenues which hit record levels in 2022, and the recovery of its non-gaming revenues alongside the resurgence in staycations and MICE (meetings, incentives, conferences and exhibitions) activities.
Golden Arches Development Corp. (GADC) the master-franchisee for McDonald’s in the Philippines will have P4 billion to further expand its store network as it is targeting to open 50 this year following its successful launch of 45 new ones in 2022.
“AGI is also positioned as the biggest player in the country’s tourism sector, considered as the low-hanging fruit for the Philippine economy,” said Tan.
“Moving forward, AGI will continue to pursue expansion projects that will help put it at a vantage position to elevate the tastes and preferences of the Filipino consumer and customers worldwide with its aspirational product offerings, further reinforcing its position as the country’s truly premium lifestyle conglomerate,” said Tan.
