The Philippines' largest aviation support firm, MacroAsia Corporation, suffered a P518.13-million net loss for the first 6 months of 2020 due to the coronavirus pandemic.
Lucio Tan-led MacroAsia Corporation told the Philippine Stock Exchange (PSE) on Wednesday, August 12, that the loss "reflects a reversal in profitability – the first time in so many years since 2013."
Overall revenues fell by 41% to P1.62 billion from last year's P2.76 billion, as MacroAsia's ground handling and in-flight catering services took a hit from travel bans.
From mid-March to May, domestic travel was restricted and international flights by local carriers were halted.
In the January-June period, in-flight catering suffered the largest decline in revenues by 45% to P723.95 million from P1.33 billion year-on-year. MacroAsia, through its food segment, was only able to sell 3.2 million meals for the period, compared to last year's 5.62 million meals.
As the future of airline catering remains bleak, MacroAsia told the local bourse that it plans to establish its footprint in the virtual kitchen industry. Its food subsidiary, MacroAsia SATS Food Industries, opened up deliveries for ready-to-cook meals under the Chef's Express brand.
Revenues from ground handling services, meanwhile, fell to P725.99 million from last year's P1.24 billion. MacroAsia said the number of flights it handled nearly halved to 49,383 during the period.
Tan's firm also had to temporarily close its flight school, First Aviation Academy, during the 2nd quarter due to lockdown restrictions.
Meanwhile, MacroAsia's water business suffered a 17% loss to P139.76 million. It attributed the downturn to lower water consumption in Boracay, which was closed to tourists during the lockdown. It also has concessions in Nueva Vizcaya, Bulacan, Cavite, Albay, and Iloilo.
The total direct costs declined to P1.46 billion, while the consolidated operating expenses fell to P454.95 million. Starting March, MacroAsia implemented a 10% pay cut among its executives and a rotating no-work, no-pay scheme for all other employees.
"The group foresees that within the next 12 months, it will have no cash flow or liquidity problems despite the impact of quarantine restrictions and business downturn," MacroAsia told the PSE.
As of June 30, MacroAsia said its total assets are worth P11.9 billion, while cash and cash equivalents stand at P1.74 billion. – Rappler.com