Tan’s MacroAsia targeting double-digit profit growth

MACROASIA Corp. is targeting doubledigit profit growth this year, as it seeks to sustain the strong momentum seen in the first quarter.

The company led by tycoon Lucio C. Tan, Sr. is expecting better results on the back of the expansion of its aviation and catering businesses.

“We have to look at the P301 million performance for the first quarter… So in terms of percentage we still have to work it out. Still we think it’s double digit. Looking at the first quarter performance, that level of performance can be sustained,” MacroAsia Chief Financial Officer Amador T. Sendin said in a press conference after the company’s annual stockholders’ meeting in Manila on Friday.

MacroAsia reported its net income stood at P300.6 million in the January to March period, 174% higher than the P109.4 million during the same period a year ago. The first quarter figure is already more than half of its 2016 profit which stood at P440.16 million.

This year, the company said its core aviation business will continue to drive its growth, as it expects an increase in pay load factor with current clients and the acquisition of new airline clients.

MacroAsia Airport Services Corp., which provides airport ground handling services, is currently developing an area leased from the Mactan-Cebu International Airport Authority for aviation-related purposes, alongside a request from the Philippine Economic Zone Authority to declare the area as an economic zone.

The listed firm’s partnership with international provider of maintenance, repair and overhaul ( MRO) of civil aircraft, Lufthansa Technik, through Lufthansa Technik Philippines is also expected to expand its capacity given the increased demand.

“Our growth is limited in NAIA (Ninoy Aquino International Airport), we are very confined space now, and we have reached a high percentage… We could actually sell more than we can produce, so we have to look at expansion possibilities, and we will also look at other locations, like Clark or Cebu to build another hangar,” Lufthansa Technik Philippines President and Chief Executive Officer Elmar Lutter said.

Mr. Lutter declined to give further details on the project, which is still in the early stages of planning.

MacroAsia Catering Services, Inc. is also scheduled to complete its food commissary in Sucat, Muntinlupa to further expand its operations. The project, which include a three-storey building in the area, is targeted to be operational by the first quarter of 2018.

“This facility is intended to service the food production requirements of institutional clients and to support the in-flight kitchen inside NAIA as well,” the company said.

Meanwhile, MacroAsia President and Chief Operating Officer Joseph T. Chua said the company will be focusing aviation instead of growing other business segments such as its mining unit MacroAsia Mining Corp.

“Because mining is not our core business, so I think we’re just better off selling it or joint venturing or licensing it so we’re looking at what’s available, now that the policies are clearer already, you can’t mix mining with aviation and water,” Mr. Chua said.