THE Andrew Tan group of companies under the aegis of the Alliance Global Group Inc. (AGI) is poised for long-term growth with expansion plans in place for its various businesses.
At the AGI annual stockholders’ meeting, AGI President and Chief Operating Officer Kingson Sian said the group has laid out expansion programs to “future proof” its four core businesses. The group is setting aside P200 billion in capital expenditures for the next three years.
“We have future proofed our businesses. For Megaworld, we have secured 4,347 hectares of land bank which will allow us to use for development in the next 20 years.
“For Emperador, we’re looking at a new growth market which is whiskey through Whyte and Mackay and also the new product which is Smirnoff Mule. These are additional legs for the company to stand on,” Sian said.
“For Travellers, we will be a dominant player not just in gaming, but also in the tourism industry with 5,000 hotel rooms in the pipeline towards 2020,” he said.
The McDonald’s franchise business under Green Arches Development Corp. (GADC) is seen reaching 500 stores next year from 464 at present.
Out of the P200 billion capex, a total of P96.7 billion was budgeted for 2015: P65 billion for Megaworld Corp., P8 billion for casino operator Travellers International Hotel Group Inc., P21 billion for Emperador Inc., and P2.7 billion for GADC.
“We look forward with utmost confidence and optimism that the years ahead will bring us to a new level of growth on a global scale,” AGI Chairman Andrew L. Tan said.
“We are leveraging on a significant measure of success to pursue greater goals, made more reassuring by a highly consumer-centric portfolio, contributing to the country’s economy,” he added.
Property unit Megaworld Corp. is extending to the regions with its Iloilo and Cebu mixed-use developments contributing significantly to the revenue. Developments outside Metro Manila are contributing 20 percent to Megaworld’s revenue from 1 percent in the past.
Sian said Megaworld is “on track” to reach its target of P90 billion to P95 billion in reservation sales and P9 billion in rental income for 2015.
“For the economy, we’ve been growing for 15 years already. Definitely it will have a trickle-down effect outside Metro Manila. Before, our developments are 99 percent Metro Manila. Now, it’s 80/20,” the AGI president said.
For Travellers International, Sian said the firm is set to achieve “at least 5,000 rooms” by 2020. Travellers has 342 hotel rooms in its portfolio.
“For Emperador, we are re-introducing Andy Player after 25 years of absence, which is a personal blend of Mr. Andrew Tan himself and made possible by the Whyte and Mackay acquisition… It will be launched soon in the market,” Kenneth Nerecina, AGI investor relations head, said in the same event.
Nerecina also said Emperador opened three stores this year: the World’s Finest Liquor shop in Resorts World Manila, and two Emperador boutiques at the Ninoy Aquino International Airport Terminal 3 and in Eastwood.
In the first half of the year, AGI saw 5-percent gain in net income to P11.5 billion as revenue increased by 11 percent to P65.4 billion.