MacroAsia Corporation’s Net Income Surges 28%, Driven by Strong Revenue Growth in 2024

MacroAsia Corporation (MAC) delivered an impressive financial performance in 2024, posting a 28% increase in consolidated net income after tax to P1.37 billion, up from P1.07 billion in 2023, driven largely by surging revenues across business. Net Income attributable to equity holders of MAC grew 32% from P851.10 million to P1.12 billion. 

Total revenues hit a record high of P9.442 billion in 2024, 18% higher than the previous year’s P7.997 billion. This substantial growth reflects the company’s continued expansion and robust operational execution across its key business segments:

• Food Services and In-Flight Catering contributed 47% of total revenues, rising 11% to P4,402.6 million, fueled by a 4% increase in meal count, from 22.77 million to 23.70 million meals.
• Ground Handling and Aviation Services posted a 33% revenue growth, reaching P4,172.0 million compared to P3,135.5 million in 2023. This increase was supported by a 5% rise in f lights handled, totaling 189,318. This includes the 42% revenue boost to P84.8 million from First Aviation Academy (FAA), reflecting its expanded training programs.
• Water Operations grew 21% to P748.6 million, driven by a 6% increase in commercial water sales.
• Connectivity and Technology Services contributed P62.4 million, stemming from completed infrastructure projects.
• Administrative Revenues grew by 21% to P56.2 million, largely due to increased lease income in Mactan, Cebu.

Total direct costs increased by 14% to P7,108.7 million, in line with the company’s expanding business activities. Operating expenses also rose by 28% to P1,391.0 million, driven by lease rate adjustments and higher operational expenditures. 

A stronger performance from associate companies boosted profitability as well. MacroAsia’s share in net earnings from associates rose to P731.5 million, marking an increase of P154.8 million. Key contributors included Lufthansa Technik Philippines (LTP), which posted P585.2 million in net income (49% MAC share), benefitting from stronger MRO (maintenance, repair, and overhaul) operations. Cebu Pacific Catering Services (CPCS –40% MAC) reported P30.2 million in net income, a significant jump from P7.0 million in 2023, fueled by a 97% surge in meal count. Narita-based Japan Airport Service Co. (JASCO – 30% MAC) achieved a remarkable turnaround, delivering P106.1 million in net income, reversing a P3.6 million loss from the prior year. 

As of December 31, 2024, the Group’s total assets amounted to P13,417.7 million, reflecting an increase of P722.7 million (6%) from P12,694.9 million on December 31, 2023. The increase in total asset is driven mainly by the increase in cash generated from operations of the Group.

The Group’s total liabilities for the current year amounted to P5,853.9 million, reflecting a decrease of P355.7 million (6%) from P6,209.6 million as of December 31, 2023 due to net debt repayment and settlement of payables. The Group and MAC Parent continue to hold net cash positions in 2024.

Total equity increased by P1,078.4 million (17%), from P6,485.3 million in 2023 to P7,563.7 million as of December 31, 2024. Equity attributable to equity holders of the company increased by P944.9 million (15%), from P6,125.1 million in 2023 to P7,070.0 million in 2024. This increase is mainly due to the net income attributable to the equity holders, which was booked in retained earnings amounting to P1,122.9 million.

With a strong financial position and sustained growth across its business units, MacroAsia is poised for continuing growth. Beyond the airports, MacroAsia’s businesses in the non-airline food segment and water concessions provide impetus for further resiliency, as the Group’s revenue mix benefit from a more diverse topline portfolio.

“MacroAsia’s performance in 2024 highlights our ability to adapt and thrive in a dynamic business landscape. As demand in aviation and food services continues to rise, we remain committed to expanding our footprint and enhancing operational efficiencies even beyond airports,” said Eduardo Luis T. Luy, President and COO of MacroAsia Corporation.

Looking ahead, MacroAsia is committed to enhancing its market presence and optimizing its operations to drive long-term, sustainable growth across aviation, food services, and related industries. As the company enters 2025, it remains confident in maintaining its upward trajectory, with anticipated revenue growth fueled by its expanding aviation services, food business, and water concessions.

While revenue growth is expected to maintain a similar momentum as last year, MacroAsia remains cautious of potential cost pressures driven by external factors. The company has secured new airline clients at NAIA, including Air Canada and Air India, further strengthening its aviation services portfolio. In the long term, the privatization of NAIA operations in September 2024 is anticipated to increase flight volumes and passenger traffic, as enhanced airport infrastructure boosts capacity and efficiency. However, the recently implemented MIAA Administrative Order on leases and fees has raised the cost of doing business at NAIA. While these increases are often passed on to clients and passengers, a significant rise in travel costs could impact overall demand.

The lease for the ecozone where Lufthansa Technik Philippines (LTP) operates is set for renewal in 2025, with an expected increase in lease rates. The lease contract of MacroAsia with the Airport Authority provides that the period of lease shall be effective for a period of twenty-five (25) years commencing on September 01, 2000 and renewable for another twenty-five (25) years thereafter at the option of the lessee subject to such terms and conditions as maybe mutually agreed upon by both parties. As an export enterprise, LTP primarily serves international airlines that do not operate commercially in the Philippines, meaning they do not directly benefit from NAIA’s capacity enhancements. Given this, MacroAsia Properties, as a PEZA developer, and LTP, as a PEZA locator, are actively engaging with authorities to negotiate the terms of the ecozone renewal, ensuring continued operational viability and competitiveness. 

Beyond the airport, MacroAsia’s joint venture with SATS (Singapore) is expanding its commissary operations, with a facility extension that will double production capacity by 2027. This expansion reinforces the company’s commitment to meeting the growing demand for high-quality food services of institutional non-airline clients. Outside Metro Manila, MacroAsia is developing key water infrastructure projects, including water treatment facilities in Bacolod and Poro Point, La Union, as well as one of the largest desalination plants in Lapu-Lapu City. These projects are expected to begin generating revenue by 2026 or earlier, further diversifying the company’s revenue portfolio mix as part of the topline resiliency drive through MacroAsia’s presence in essential utilities.