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MacroAsia Corp. is back in the black with net profit of P461.43 million in 2022, a reversal from a net loss of P150.92 million in 2021
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Favorable operating conditions of subsidiaries and affiliates and the successful drive to grow non-airline business units led to the revenue outperformance, the company said
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Revenue in 2023 is expected to grow further as the aviation services industry is on track for a strong recovery while the group’s non-airline businesses continue to expand
MacroAsia Corp. returned to profitability in 2022 with net income of P461.43 million, rebounding from a net loss of P150.92 million in 2021.
The group’s comprehensive income soared 351.5% to P730.62 million in 2022 from P161.82 million in 2021 after revenue vaulted 151% to P4.88 billion from P1.95 billion, MacroAsia said in a statement released on April 3.
The favorable operating conditions of MacroAsia’s subsidiaries and affiliates in 2022, as well as the success of the group’s drive to grow its non-airline units, led to the strong topline growth, the company said.
The group’s total assets grew 10.58% from P10.4 billion in 2021 to P11.5 billion in 2022.
MacroAsia’s stock was unchanged from last Friday’s closing price of P4.88 per share as of 10am on April 3, as the market still has to digest the group’s positive report.
MacroAsia’s consolidated net income came from contributions from its aircraft maintenance, repair and overhaul (MRO) joint venture, airline catering and food services units, ground handling, and water distribution and concession businesses.
The MRO joint-venture business, Lufthansa Technik Philippines (LTP), is a partnership with Lufthansa Technik of Germany that operates an aircraft repair facility at Ninoy Aquino International Airport (NAIA) with clients comprising both local and foreign carriers.
MacroAsia noted that some of LTP’s clients do not have commercial flights to the Philippines, but just send their airplanes to the country for repairs.
LTP has managed to establish the Philippines as a center of excellence for aircraft repair in the global MRO map, MacroAsia said.
At NAIA, MacroAsia has two majority-owned subsidiaries that operate separately inflight kitchens for Philippine Airlines and foreign carriers.
Outside the airport, MacroAsia operates a commissary that opened a few months before the COVID-19 pandemic started early in 2020. This business in Muntinlupa City has evolved into a significant revenue pillar for MacroAsia’s food group.
The food services staff of MacroAsia are also present in some banks and institutional clients in Metro Manila. MacroAsia has SATS of Singapore, a listed company, as its JV partner in the food group.
In ground handling, MacroAsia is present in 21 airport locations across the Philippines. In Japan, the group also has a ground handling JV with , a listed Japanese company.
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MacroAsia’s water businesses are located in Cavite, Bulacan, Boracay, Nueva Vizcaya and Bicol areas. These water operations produce potable water from either surface or ground sources and distribute the drink in bulk or retail to commercial clients and households.
The group also has septage management services in some areas in the Philippines.
As the world slowly stepped out of COVID-19-related measures pandemic that constrained travel, MacroAsia saw domestic travel volumes in 2022 climb to pre-pandemic levels, with international travel growing closer to 2019 pre-pandemic levels. MacroAsia said the travel business was one industry that was impacted in 2020 when passenger travel restrictions were imposed on various airports.
MacroAsia said it adjusted its strategic focus, growing its other businesses not related to aviation as its core airline-related units were in standby mode. Thus, 24% of MacroAsia topline in 2022 now comes from non-airline-related activities.
The group said the momentum for revenue growth in 2023 “is apparent, as the aviation services industry tracks towards strong recovery while the non-airline businesses of the group continue to expand.”
In 2022, MacroAsia’s financial position further strengthened, as the group managed to generate sufficient cash flow that allowed it to reduce interest-bearing debt and expand the working capital of its business units without the need for equity infusion from their parent’s shareholders.
