MacroAsia net income up 72% to P337M in Q1

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Photo from MacroAsia.
  • MacroAsia Corp. reported a consolidated net income of P337 million in the first quarter of 2024, up 72% from P196 million in the same period last year
  • Inflight catering and food services revenue increased 17% to P1.06 billion
  • Ground-handling revenue rose 3% to P976 million supported by a total of 49,281 flights handled during the quarter

MacroAsia Corp.’s consolidated net income grew 72% to P337 million in the first quarter of 2024 from P196 million in the same period last year driven largely by volume growth across all of the group’s business units.

Revenues jumped 24% to P2.22 billion during the first three months of this year from P1.79 billion in the same period last year, MacroAsia said in a statement.

Inflight catering and food services revenue increased 17% year-on-year to P1.06 billion, driven by a rise in meals sold to 5.6 million in the first three months of 2024. This segment accounts for 48% of the group’s total revenues.

Ground-handling revenue likewise rose 3% to P976 million, supported by a total of 49,281 flights handled during the quarter, an increase of 12% from the 44,056 flights serviced in the same quarter in 2023.

Water operations contributed P154 million to total revenues, reflecting a 12% increase due to volume growth in water concession accounts.

The MacroAsia-controlled connectivity and technology services company, Tera Information and Connectivity Solutions, Inc., posted a revenue of P0.8 million. A service contract for data connectivity was started by Tera in the last quarter of 2023 but due to changes in the project timeline, minimal revenue was recognized in the current year.

Administrative revenues from economic zone remains flat as rates charge remains unchanged.

Total direct costs 21% to P1.67 billion, attributable to the increase in business operations across all business segments of the group.

Share in net earnings of associates for the first three months of this year amounted to P148.4 million in contrast to P90.7 million last year. The notable contributions for this account came from MacroAsia’s aircraft maintenance, repair and overhaul joint venture, Lufthansa Technik Philippines (LTP).

LTP reported a quarterly net income of P258.7 million, of which MacroAsia’s 49% share is recorded at P126.8 million.

The other associates of MacroAsia are Japan Airport Service Co., Ltd. based in Narita, Japan and Cebu Pacific Catering Services, which operates in Mactan, Cebu.

“Following our momentum of growth in 2023, our first quarter 2024 results demonstrate further the resilience and adaptability of the MAC Group amidst challenging market conditions,” MacroAsia president and chief operating officer Eduardo Luis Luy said.

MacroAsia pursues its interests mainly in aviation services, non-airline food services and water concessions and utilities through its various subsidiaries and associates.

READ: MacroAsia’s 2023 net income soars 132% to P1.07B