MacroAsia returns to profitability

MANILA, Philippines — Lucio Tan’s MacroAsia Corp. returned to profitability last year on the back of strong contribution from most of its business units and affiliates.

MacroAsia reported a net income of P461.43 million in 2022, a reversal of the P150.92 million net loss recorded a year ago.

Its net income came from the contributions of its aircraft maintenance, repair and overhaul (MRO) joint-venture, airline catering and food services units, ground handling and water distribution and concession businesses.

Revenues last year soared by 151 percent to P4.88 billion from P1.95 billion in 2021.

“The favorable operating conditions of MacroAsia’s subsidiaries and affiliates in 2022, as well as the success of the drive to grow the group’s non-airline business units resulted into the strong topline growth,” it said.

Further, MacroAsia said its financial position strengthened last year as it was able to generate sufficient cash flow.

This enabled the reduction of interest-bearing debt and expand the working capital of the business units, without need for equity infusion from MacroAsia’s parent shareholders, it said.

With less-restrictive measures of the country and other governments in the region, MacroAsia said travel and tourism in 2022 rebounded.

“As the world slowly stepped out of measures related to COVID-19 that constrained travel, MacroAsia saw domestic travel volumes in 2022 climb to pre-pandemic levels, with international travel trailing closer to 2019 pre-pandemic level,” the company said.

MacroAsia’s businesses were impacted in 2020 when various airports faced passenger travel restrictions.

To survive, the company adjusted its strategic focus, growing its other businesses not related to aviation as its core airline-related business units went on standby mode.

As a result, MacroAsia said 24 percent of its topline in 2022   came from non-airline related activities.

MacroAsia expects revenue growth to continue this year on the back of the continued travel and tourism recovery.

“The momentum for MacroAsia’s 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,” it said.

MacroAsia’s MRO business is through Lufthansa Technik Philippines (LTP), which is in partnership with Lufthansa Technik of Germany.

LTP operates an aircraft repair facility in NAIA, with clients ranging from local airline carriers to other airlines from other countries.

MacroAsia also has majority-owned subsidiaries that operate an inflight kitchen for Philippine Airlines and another inflight kitchen for foreign airlines in the Manila Internatioanl Airport.

The company’s ground handling business, meanwhile, is present in 21 airport locations in the Philippines.

It also has a groundhandling joint venture in Japan with listed Japanese company Konoike.

MacroAsia’s water businesses are located Cavite, Bulacan, Boracay, Nueva Vizcaya and Bicol areas.