MacroAsia profit doubles to P700 million

MANILA, Philippines — In-flight caterer and aircraft handler MacroAsia Corp. doubled its profit to nearly P700 million in the first semester on the back of the double-digit growth in its core business and higher contributions from its aviation units.

Based on its financial report, MacroAsia hiked its net income by more than twice to P691.6 million in the six months to June, from P285.8 million a year ago.

As such, the company hired by airlines to support their operations is optimistic about expanding its aircraft maintenance, repair and overhaul (MRO) and in-flight catering.

MacroAsia is looking for a new facility where it can place the expansion of its food segment, as its current commissary in Muntinlupa is close to full capacity. The company is benefitting from the ballooning demand for air travel, with carriers placing more orders for in-flight catering.

Also, MacroAsia’s affiliate Lufthansa Technik Philippines (LTP) is eyeing to build a new hangar at the Clark International Airport. Estimated to cost P8 billion, the facility will cater to the MRO demand for wide-body aircraft.

MacroAsia increased its revenue by 29 percent to P4.77 billion in the first half from P3.71 billion a year ago, driven by a record P2.55 billion in earnings in the second quarter.

Among its core businesses, MacroAsia grew its ground handling income by 47 percent to P2.19 billion and in-flight catering revenues by 14 percent to P2.15 billion.

Expenses also scaled up by 22 percent to P3.44 billion, but MacroAsia said its revenue growth is enough to cover the cost increase.

Aside from this, MacroAsia received profit shares from Japan Airport Service Co. Ltd. (JASCO) in Japan and Cebu Pacific Catering Service (CPCS) in Cebu. Broken down, the company took in P43.5 million from JASCO and P16 million from CPCS.

MacroAsia is also doing business outside of the aviation industry, with participation in water and connectivity, which turned in revenues of P327.1 million and P43.6 million, respectively.

The company, owned by tycoon Lucio Tan, plans to broaden its business network outside of aviation, as it is enticed by growth opportunities in non-airport industries like water and connectivity.