Alliance Global Group, Inc. (AGI), the Philippines-based conglomerate led by Dr. Andrew L. Tan, today announced a significant 66% year-on-year surge in its first quarter 2025 consolidated net income, reaching P11.0 billion. This figure includes one-time gains from the deconsolidation of Golden Arches Development Corp (GADC).
Notably, even after accounting for these one-time gains, AGI demonstrated strong underlying performance with a 14% increase in normalized net income to P7.5 billion, up from P6.6 billion in the same period last year. The company also reported a 3% rise in consolidated revenues to P51.9 billion, compared to P50.6 billion in the first quarter of 2024. Normalized net income to owners also saw an impressive 18% year-on-year growth, reaching P5.0 billion.
Kevin L. Tan, Chief Executive Officer and President of AGI, commented, “AGI’s strong first quarter results underscore the resilience of our diversified portfolio amidst prevailing global economic headwinds, particularly the ongoing US tariff issues. Our topline growth was primarily driven by robust real estate sales, strong revenues from our tourism-related businesses, and consistent leasing income from our premium offices and lifestyle malls. These sectors continue to benefit from resilient consumer spending and our commitment to delivering attractive and experiential offerings.”
Tan further added, “Our first quarter performance also reflects our unwavering focus on efficient cost management across all our business segments. We believe that our prudent and disciplined business practices will provide us with greater operating leverage, enabling us to navigate the current challenging environment effectively.”
Key highlights from AGI’s business units in the first quarter of 2025 include:
Megaworld: The leading township developer recorded a substantial 16% year-on-year increase in attributable net income to P5.1 billion, supported by growth across all its core businesses. Consolidated revenues rose by 11% to P20.9 billion, with real estate sales increasing by 8% to P13.1 billion, driven by accelerated construction progress, particularly in projects outside Metro Manila. Megaworld Hotels and Resorts also experienced a significant 27% surge in revenues to P1.4 billion, fueled by higher average daily rates and increased domestic tourism and MICE activities. Megaworld Premium Offices saw a sharp 17% year-on-year increase in rental income due to higher renewal rates and a strong 87% occupancy rate. Megaworld Lifestyle Malls contributed strongly with an 11% growth in revenues to P1.7 billion, driven by increased foot traffic, tenant sales, and a favorable tenant mix with a 92% occupancy rate.
Emperador: The spirits manufacturing arm reported consolidated revenues of P13.2 billion in the first three months of the year, primarily driven by a 10% year-on-year increase in brandy revenues. Domestic sales were boosted by the strong double-digit growth of its aspirational Spanish brandy, Fundador, while its other Spanish and Mexican brands also performed strongly in international markets. Supported by cost efficiencies, Emperador achieved a healthy 7% year-on-year growth in net income to P1.85 billion.
Golden Arches Development Corp (GADC): Following a new license term agreement with McDonald’s Corporation, GADC is now treated as an associate of AGI, in which AGI retains a 49% interest.
Looking ahead, Mr. Tan concluded, “Despite the ongoing macroeconomic headwinds, we remain optimistic about the remainder of the year. We have ambitious plans in place across our diverse business segments, poised to capitalize on resilient consumer spending and the anticipated resurgence in global economic activity. We are committed to building on this strong start and delivering a robust full-year performance.”
AGI’s diverse interests encompass real estate development through Megaworld Corporation; spirits manufacturing via Emperador Inc.; leisure, entertainment, and hospitality through Travellers International Hotel Group, Inc.; and quick service restaurants through Golden Arches Development Corporation (McDonald’s Philippines).
