Alliance Global sets P70B capex for 2023

Alliance Global Group Inc. (AGI), led by Andrew Tan, on Thursday announced a P70 billion spending program for 2023 to reflect a 23% annual increase as it seeks to sustain the growth of its domestic and international operations.

In a regulatory filing, AGI said the capital expenditure (capex) program will be used for the expansion of its business units, with the biggest going to Megaworld Corp. with P55 billion for its office, mall, and hotel business segments.

Its spirits business, Emperador Inc., will spend P7 billion for the upgrade of its machinery and facilities, both domestic and overseas. Some P6 billion will be spent to boost the operations of distilleries in Scotland, and P1 billion will be for improvements in the Philippines, Spain, and Mexico.

Travellers International Hotel Group Inc. has been allocated P4 billion for its ongoing expansion projects at the Newport World Resorts complex as it seeks to sustain the record growth in gross gaming revenues in 2022.

Golden Arches Development Corp., the local franchise holder of McDonald’s, will use its P4-billion capex to open 50 stores this year, after it launched 45 new stores in the past year.

“A firm believer of the country’s attractive long-term growth prospects, the group is betting on the continued improvement in consumer spending,” AGI chief executive officer Kevin Tan was quoted as saying.

“AGI is also positioned as the biggest player in the country’s tourism sector, considered as the low-hanging fruit for the Philippine economy,” he added.