AGI sees resilience amid inflation, weak global demand

ANDREW L. TAN-LED Alliance Global Group, Inc. (AGI) said its businesses remain well-positioned to navigate geopolitical uncertainties and macroeconomic headwinds, citing strong liquidity, healthy balance sheets, and diversification across its operations.

“We entered 2026 with a strong balance sheet and sufficient liquidity across the group, which is what really matters when the outlook is uncertain like this,” AGI President, Chief Executive Officer, and Vice-Chairman Kevin Andrew L. Tan said during the company’s annual stockholders’ meeting on Thursday.

Mr. Tan said inflation, elevated interest rates, market volatility, and softer global demand continue to pose challenges, but the conglomerate’s financial position provides flexibility to manage external pressures while pursuing growth opportunities.

“Inflation, interest rates, movements, and a softer global demand are all still present, but our subsidiaries each carry healthy cash positions and well-managed debt,” he said.

“[T]hat gives us room to absorb shocks without compromising our growth plans,” he added.

Mr. Tan said the group’s diversified portfolio across property, spirits, tourism, and other businesses, combined with ongoing cost-efficiency initiatives, helps mitigate risks in an uncertain operating environment. 

“And on top of that, we plan to keep up cost efficiencies that we have built into the businesses over the years. And that is what allows us to stay on the front foot, even when conditions are uncertain,” he said.

During the first quarter, AGI posted a 5% increase in attributable net income to P5.2 billion, supported by growth in its property, hospitality, leasing, and spirits businesses.

Consolidated revenues rose 1% to P42.2 billion from the normalized P42 billion recorded a year earlier.

Meanwhile, January-to-March net income increased 6% to P7.8 billion from the normalized P7.4 billion in the same period last year, excluding one-time gains and the impact of the deconsolidation of Golden Arches Development Corp. in March 2025.

For full-year 2025, AGI reported a 19% increase in attributable net income to P20.7 billion, driven by contributions from its real estate and leisure businesses, as well as one-off gains.

The conglomerate’s portfolio includes property developer Megaworld Corp., liquor maker Emperador Inc., casino operator Travellers International Hotel Group, Inc., and quick-service restaurant operator Golden Arches Development Corp.

Shares in AGI rose 1.25% to P8.11 apiece on Thursday. — Alexandria Grace C. Magno