AVIATION support service provider MacroAsia Corp. (MAC) reported a 10-percent growth in net income to P1.194 billion last year from P1.09 billion in 2018.
The profit growth was driven by increased revenue from in-flight catering services, ground-handling and aviation services and water operations.
Revenues from in-flight catering which contributed 47 percent of the total revenues, rose to P2.91 billion in 2019 from the previous year’s P1.66 billion.
MAC said this is brought about by the increase in the number of meals served to airline and institutional clients, from 5.8 million in 2018 to 12.4 million meals in 2019. Increase in meal count is attributable to contributions coming from subsidiaries MacroAsia SATS Food Industries Corp. (MSFI) which begun commercial operations in March 2019 and MacroAsia SATS in-flight Services (MSIS), a subsidiary of MACS which was designated as in-flight caterer of Philippine Airlines (PAL) starting March 16, 2019.
Revenues from ground-handling and aviation services rose to P2.87 billion from P1.46 billion in 2018 due to higher passenger and ramp services for PAL and PAL Express in Manila and Cebu.
MacroAsia Airport Services is one of three ground handlers given concessions to operate in the new Terminal 2 in Mactan, Cebu. It started to book revenues in that terminal in October 2018.
Flights handled grew by 63 percent from 120,862 flights in 2018 to 197,079 flights in 2019.
Revenues from water operations contributed 6 percent of the total revenues, an increased by 28 percent to P347.60 million from P271.04 million during the same period last year.
Water unit Boracay Tubi Systems Inc. benefited from the re-opening of Boracay Island in October 2018, as it gained more clients and achieved new revenue sources from sewage treatment plant-related operations.
MAC said total direct costs in 2019 amounted to P4.82 billion, an increase of 85 percent from 2018. The increase is due to business volume growth of ground-handling and catering subsidiaries.
Wage increases also impacted on the labor costs.
