The Spirit of Excellence.
The year 2012 was a favorable one not only for your Company but
for the Philippines as a whole. The year saw the Philippine’s GDP
growing by 6.6%, on the back of the active trade, services, real estate,
and construction sectors, even exceeding expectations of economists
and market analysts.
Contributing to the country’s sterling economic growth,
AGI continues to improve on past record performances.
Our major business segments—real estate through
Megaworld Corporation (Megaworld) and Global-
Estate Resorts, Inc. (GERI); food and beverage through
Emperador Distillers, Inc. (EDI); quick-service restaurants
through Golden Arches Development Corporation
(GADC), which holds the local franchise for McDonald’s
fast-food restaurants; and tourism-entertainment and
gaming through Travellers International Hotel Group, Inc.
(Travellers International)—all turned in exceptional figures
for the year.
Our total revenues grew by a record 63.1% to P102.72
billion in 2012 from P62.97 billion the previous year,
primarily due to revenues contributed by Resorts World
Manila which amounted to P32.5 billion. Also contributing
substantially to our revenue growth are the 17% growth
in the sale of goods such as consumer products and real
estate and the 220% increase in the rendering of services
due to revenues added from Travellers.
With the consolidation of Travellers in 2012, AGI’s tourism-
entertainment and gaming business became the biggest
contributor to total revenues for the year, putting in 31.6%.
The real estate business, through Megaworld, was the
second highest contributor with 26.8%. This was followed
by EDI’s food and beverage business with 23%, and GADC’s
quick-service restaurant business with 13.6%.
Our net income increased by 76% to P20.5 billion in 2012
from P11.6 billion the previous year, before the P3.1 billion
non-recurring income from the acquisition of a subsidiary.
The portion attributable to owners of the parent company
grew by 64% to P13.9 billion from P8.5 billion in 2011,
propelled by the strong results from our real estate,
tourism-entertainment and gaming, and food and beverage
As the biggest contributor to our bottom line in 2012,
Travellers turned in an impressive performance for the year.
Travellers’ flagship project, Resorts World Manila, registered
an average foot traffic of 17,200 per day and a total of 6.3
million visits by the year end, a 4% increase from 2011
figures. The increase in foot traffic was due to a series of
new promotional events and services and the production
of the award-winning musical The King and I. Moreover,
Resorts World Manila’s membership reached 1.7 million
On the other hand, Megaworld continued to lead the real
estate industry as it sold more than 12,000 residential
units worth roughly P63.5 billion in 2012, maintaining
its distinction as the biggest residential developer in the
country. The company launched 11 new projects for the
year while continuing its work on existing ones. Prior to
the consolidation of Travellers, Megaworld had consistently been our best achiever and our biggest revenue contributor.
Megaworld’s share in the achievement of our financial
objectives for 2012, however, remains substantial.
EDI remained a strong player in the local distilled spirits
industry as Emperador Brandy and The BaR flavored
alcoholic drinks continued to benefit from continuously
growing customer patronage. The demand for Emperador
Light also remained very strong. In 2012 alone, Emperador
sold 31 million cases, making it the 2nd largest consumed
brand spirit globally and the world’s largest-selling brandy.
EDI expanded its production capacity and technical
capabilities through the acquisition of the Sta. Rosa plant
of Diageo Philippines Inc. that increased the total bottling
capacity of the company by about 20%. This acquisition
helps boost the company’s competitiveness in promoting
Emperador as a strong global brand.
In turn, GADC continued its strong showing in the quick-service
restaurant business as its revenues substantially grew. As in
previous years, the company owed its revenue growth
to the opening of new McDonald’s company-owned and
GERI, our newest subsidiary, is now deep into the
development of two major projects—Boracay Newcoast
and Twin Lakes. We have allotted a total of P20 billion for
these two flagship projects which will feature integrated
master-planned layouts that include world-class resorts
and first-rate facilities and amenities. Moreover, through
GERI, we will be developing over 1,300 hectares of prime
land in Boracay, Tagaytay and Nasugbu, Batangas into
world-class tourism estates.
Taking into account everything that happened in 2012,
I am happy and proud to say that your Company outdid
itself again, and in grand fashion. Our efforts in building
strong brands that will weather any kind of economic
storm or take advantage of beneficial socio-economic
climates paid off quite well.
In the face of unpredictable global economic conditions,
we remain upbeat on our prospects for continued growth
and increased profitability. Allow me to assure you that
we will not rest on our laurels but will continually aspire
to outdo ourselves every single year. We are committed to
do even better than before, and to reach greater levels of
achievement in the spirit of excellence.
Andrew L. Tan
Chairman and Chief Executive Officer
Alliance Global Group, Inc. and Megaworld Corporation