MacroAsia Corporation's Q12024 Consolidated Net Income Surges 72% to P337 Million

MacroAsia's growth momentum is still going strong, as it reveals that its revenues for the first three months of this year increased by 24% to P2.22 billion from P1.79 billion in Q1 2023. Consolidated net income increased 72% to P337 million in the first quarter of this year from P196 million in the same time last year, driven by robust topline growth and sustained cost leadership initiatives. 

The growth in volume across all business areas of the group was the primary factor responsible for the notable improvement in net income. The revenue from in-flight catering and food services increased by 17% to P1.06 billion in the first three months of 2024, mostly due to an increase in meals sold to 5.6 million. Fourteen percent of the group's overall revenue comes from this segment. With 49,281 flights handled in total during the quarter, ground handling revenue surged to P976 million, up 35% from 2023. Water operations made a P154 million contribution, indicating a 12% rise in earnings as a result of water concession accounts' increasing volume.

The increase in total direct costs to P1.67 billion was less dramatic than the gain in revenue, at 21%.
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During the first three months of this year, associates' share of net earnings was P148.4 million, as opposed to P90.7 million in the same period the previous year. Lufthansa Technik Philippines (LTP), MacroAsia's joint venture for aircraft maintenance, repair, and overhaul (MRO), made a significant contribution to this account. MacroAsia's 49% share of LTP's stated quarterly net income of P258.7 million is recorded at P126.8 million. The other partners of MacroAsia are Cebu Pacific Catering Services, situated in Mactan, Cebu, and Japan Airport Service Co., Ltd., situated in Narita, Japan.

MacroAsia’s President & COO, Eduardo Luis T. Luy, stated that "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." He reiterated that "We remain committed to delivering exceptional services to our customers, while driving sustainable growth and value for our stakeholders, consistent with our strategy of scaling the edges of our business segments to secure more diversified revenue sources."