Arthur Fuentes

Article (news)

Alliance Global

Raine Musñgi

ABS-CBN News

MANILA — Alliance Global Inc. is increasingly becoming a different kind of conglomerate, with growth shifting toward recurring property income, higher-margin businesses and tourism, even as the Philippine economy loses momentum, an official of the company said.The transformation is visible in the numbers.AGI reported P16 billion in net income for the first half of 2026, up 3 percent year-on-year, while consolidated revenue, excluding the impact of its 2025 deconsolidation of Golden Arches Development Corp., grew 3 percent to nearly P90 billion.But the more revealing story is what is happening below the topline.“Gross margins for Megaworld is now 54 percent,” Andy Dela Cruz, AGI’s head of group investor relations and capital markets, told ANC’s Market Edge. He said that was 3 to 4 percentage points higher than the previous year, citing pricing and cost initiatives.At Emperador, the liquor business is seeing an even wider gap between sales and profitability. Revenue from whisky and brandy is growing in the mid- to high-single digits, Dela Cruz said, but gross profit is up more than 20 percent.Travelers International is another example. Revenue is up in the single digits, but Dela Cruz said income is “almost double compared to last year.”AGI’s reported first-half results back up the margin expansion at Emperador: brandy gross profit rose 20 percent while whisky gross profit increased 12 percent.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/feZLep4337Q?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>The shift comes as the Philippine economy faces a softer backdrop. The Philippine Statistics Authority said GDP grew just 2.3 percent year-on-year in the second quarter, following 2.8 percent growth in the first quarter. Household consumption grew 2.8 percent, while gross capital formation fell 9.2 percent.Dela Cruz said AGI is responding by leaning harder on diversification.“We have different businesses, different customers and different markets,” he said. “When one&#x27;s under pressure, the others usually aren&#x27;t.”That may explain why AGI is increasingly emphasizing the quality of earnings, rather than simply the size of revenue.The group&#x27;s property arm, Megaworld, reported P12.7 billion in first-half net income, up 5 percent, while residential presales surged 15 percent to P63 billion, driven by provincial township developments.Dela Cruz says the group is also putting more capital behind tourism, which he called the area where “most of the capital is going this year.”But the interview points to several potentially bigger moves still ahead.Megaworld is preparing two possible locations for its next township, both outside Metro Manila. AGI currently has 37 townships and expects to reach 38 by year-end.Meanwhile, Dela Cruz disclosed plans to bring what he calls “crown jewel assets” into MREIT, including assets in Uptown Bonifacio. He described the offices as having occupancy rates in the high 90s and Uptown Mall as Megaworld&#x27;s best-performing mall.That comes as MREIT prepares its Wave 5 expansion, involving about 303,500 square meters of commercial assets and taking its portfolio to almost 1 million square meters.And there is another twist for investors: despite AGI&#x27;s appetite for growth, management says it is not necessarily looking to buy it.Dela Cruz said AGI remains open to M&amp;A, but sees enough opportunities inside its existing businesses that internal investments could outperform “paying a control premium” for acquisitions.For Dela Cruz, the strategy also has a broader purpose.“Notwithstanding all the negative news in our country, we&#x27;re still focused on nation building,” he said, pointing to tourism and its potential to create jobs.Whether that strategy can translate into a sustained rerating of AGI is a question for investors. But one thing is becoming clearer: AGI&#x27;s next growth story may be less about selling more and more about earning more from what it already owns.The full interview reveals where AGI sees its next provincial property bets, what its “crown jewel” assets could mean for MREIT, why tourism is attracting so much capital, and why the conglomerate may prefer building internally to making a big acquisition.

Alliance Global is changing as profits grow faster than sales—official

News

Entertainment

Lifestyle

Sports

Metro.Style

More

BINI

Sudoku

Word of the Day

Lotto

Horoscope

Business

Alliance Global is changing as profits grow faster than sales—official

Raine Musñgi,

ABS-CBN News

Published August 24, 2026 09:33 AM PHT

Read More:

Alliance Global Inc

Emperador

Megaworld

Andrew Tan

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

Sign Up

I have read and agree to the Terms and Privacy Policy.

Haven't received our newsletter?

Check your inbox to verify and confirm your subscription.

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.