MacroAsia profit dips to mil­lion in Q1

Manila Bulletin - - Shipping Bulletin - By JAMES A. LOY­OLA

MacroAsia Cor­po­ra­tion, the air­line ser­vices unit of the Lu­cio Tan Group, re­ported a 22 per­cent drop in net in­come to R233 mil­lion in the first quar­ter of the year due to non-re­cur­ring ex­penses and higher costs.

In a dis­clo­sure to the Philip­pine Stock Ex­change, the firm noted that, “the non-re­cur­ring pro­vi­sions and the one-off startup costs ab­sorbed in the first quar­ter are poised to open up a stronger per­for­mance ahead, as rev­enues are surely poised to grow due to the ex­panded client port­fo­lio that has been pre­pared for ser­vic­ing in the first quar­ter.”

MacroAsia’s first quar­ter rev­enues grew 15 per­cent, from R692 mil­lion in 2017 to R794 mil­lion in 2018, driven by a 44 per­cent growth in its ground-han­dling ser­vices and a 4 per­cent growth in its core in­flight cater­ing busi­ness.

For the first three months of 2018, ground-han­dling rev­enues rose to R289 mil­lion, com­pared to R201 mil­lion in 2017.

In­flight meal rev­enues, aris­ing from mostly for­eign air­line clients rose to R384 mil­lion, com­pared to R368 mil­lion last year.

Its rev­enues from non-in­flight ac­counts de­clined by 20 per­cent though, from R75 mil­lion in 2017 to R61 mil­lion in 2018 as it is cur­rently con­strained by pro­duc­tion ca­pac­ity is­sues.

The net re­sults were im­pacted heav­ily though by a 22 per­cent rise in di­rect costs, from R480 mil­lion in 2017 to R587 mil­lion.

It said this is “largely at­trib­ut­able to the in­crease in staff num­bers to cope with new clients and the tem­po­rary spi­ral­ing cost of raw ma­te­ri­als, util­i­ties and sup­plies that could be linked to the per­va­sive ef­fect of the TRAIN that be­came ef­fec­tive early this year.”

Ground­han­dling per­son­nel grew 44 per­cent from 2,051 in 2017 to 2,921 in 2018, as MacroAsia had to ex­pand im­me­di­ately to be ready to ser­vice at least seven new air­line clients re­sult­ing from the clo­sure of one ground­han­dling provider.

Only three of these new air­line clients were ser­viced in the lat­ter part of March. The rest of the air­lines were ser­viced only in April and May.

MacroAsia is also get­ting ready to start its ser­vice in the new Ter­mi­nal 2 in Mac­tan, Cebu, as it is one of only three ground-han­dlers that were granted con­ces­sion li­censes to op­er­ate in this ter­mi­nal. MacroAsia’s prepa­ra­tions and in­vest­ments for this ex­pan­sion has com­menced early this year.

Lufthansa Tech­nik Philip­pines (LTP), the MRO-JV which is owned 49 per­cent by MAC, booked its first quar­ter 2018 core rev­enues rel­a­tively flat at R2.06 bil­lion, com­pared to R2.07 bil­lion in 2017.

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