MacroAsia posts 172% income growth in 9M 2023

  • MacroAsia Corp. posted a consolidated net income of P745.74 million in the first nine months of 2023, a 172% growth from the P274.16 million reported during the same period in 2022
  • Group revenue for the first nine months grew 79% as third quarter revenue increased significantly and has exceeded its pre-pandemic quarterly performance
  • Revenue from in-flight and other catering, and ground handling and aviation services improved as the company handled more flights
  • MacroAsia’s share in net income of associates Lufthansa Technik Philippines, Japan Airport Services Co., and Cebu Pacific Catering Services grew by P67 million

MacroAsia Corp. posted a 172% growth in consolidated net income of P745.74 million in the first nine months of 2023 from P274.16 million year-on-year.

Group revenue reached P5.739 billion for the January to September 2023 period, up 79% from P3.211 billion in the same period in 2022, the aviation-related services company said in a regulatory disclosure.

MacroAsia noted its third-quarter revenue of P2.03 billion exceeded its pre-pandemic quarterly performance and is 45% higher than the P1.395 billion earned in the same quarter of 2022.

The majority of the consolidated revenues, 51%, came from in-flight and other catering services, totaling P2.944 billion. This represents a significant 101% increase from the P1.467 billion reported in 2022, attributed to sustained growth in business volume.

Revenues from ground-handling and aviation services contributed 39% to the total, reaching P2.264 billion, an improvement of 70% from the P1.329 billion recorded in 2022. The growth was primarily fueled by increased flight volume in airports, with flights handled growing by 43% to 134,750 in the first nine months of 2023.

Revenues from the water segment, which accounted for 8% of the total, likewise climbed 27% to P456.23 million from P359.92 million.

Share in net income of associates amounted to P369 million for the first nine months of the year, an increase of P67 million year-on-year. This represents MacroAsia’s share in the net operating result of its associated companies—Lufthansa Technik Philippines (LTP), Japan Airport Services Co. (JASCO), and Cebu Pacific Catering Services (CPCS).

LTP’s maintenance, repair, and overhaul (MRO) business reported increased activities compared to the same period last year. JASCO’s ground handling business in Narita, Japan, began to show positive operating results in the third quarter due to the opening up of the China travel market. CPCS, the inflight caterer in Cebu, resumed its operations in March 2023 and reported net income as travel volumes in Mactan-Cebu International Airport started to return.

Looking ahead, MacroAsia is studying the expansion of its food commissary in Muntinlupa and beyond Luzon to meet the expected increase in demand. LTP is also exploring the construction of a two-bay hangar for MRO services at Clark International Airport, with an estimated investment value of about $100 million.