MacroAsia Corporation Soars with 122% Surge in H1-2024 Net Income, Reaching Record P849 Million

MacroAsia Corporation achieved outstanding financial results in the first half of 2024, reporting a 122% increase in consolidated net income to P849.10 million. This significant growth was fueled by a robust 29% rise in revenue to P4.77 billion and a substantial contribution growth from its associates.

In the second quarter alone, the company recorded its highest-ever quarterly revenue of P2.55 billion, with net income surging to P512.06 million.

Revenue growth was driven by strong performance across all business units. Inflight catering and food services revenue increased by 14% to P2.15 billion due to a rise in meals sold, totaling 11.56 million in the first half of 2024. This segment accounted for 45% of the Group’s total revenues. Ground-handling services experienced a 48% revenue increase, reaching P2.19 billion, supported by the handling of 98,026 flights during the period. Additionally, water operations contributed P327.13 million, reflecting a 14% growth due to increased volume in water concession accounts.

Despite a 22% increase in total direct costs, amounting to P3.44 billion, the growth rate of these costs remained lower than the rate of revenue growth, underscoring the company’s effective cost management strategies.

A key highlight of MacroAsia’s performance is also the significant rise in its share of net earnings from associates, which increased to P349.69 million, compared to P135.89 million in the same period last year. This remarkable growth was largely driven by the company’s joint venture in aircraft maintenance, repair, and overhaul (MRO) through Lufthansa Technik Philippines (LTP). LTP reported a quarterly net income of P592.33 million, with MacroAsia’s 49% share amounting to P290.24 million. Other contributing associates include Japan Airport Service Co., Ltd., based in Narita, Japan, and Cebu Pacific Catering Services in Mactan, Cebu.

MacroAsia is also involved in water concessions and related business. Revenues from its water businesses climbed 14% to P327.13 million, compared to the first half of last year. With the revenue mix for the 2nd quarter of 2024, 22% of MacroAsia’s total revenues are derived from non-aviation related activities, driven mainly by the water segment and non-airline food business accounts.

MacroAsia’s food segment is currently working on a facility expansion of its commissary outside the airport, as its five-year old facility in Muntinlupa City is nearing full capacity due to the rapid growth of its clients. LTP on the other hand has announced ongoing studies to expand in Clark, Pampanga in order to partly address the growing and continuing demand for heavy repair services for wide-body aircraft of clients from all over the world.