MacroAsia’s H1 profit drops 33% on higher costs

MANILA, Philippines — Lucio Tan-led MacroAsia Corp. reported a 33 percent fall in its first-half earnings to P449.6 million as rising costs and weaker contributions from associates offset higher revenue gains.

That figure represented the company’s net income attributable to equity holders of the parent firm and was down from P679.7 million in the first half of 2025.

READ: MacroAsia profit jumps 28% to P1.44B in 2025

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Notably, MacroAsia still posted the decline even as consolidated revenues rose 9 percent to P5.26 billion from P4.81 billion, driven by growth in its food services, ground handling, aviation support, and water businesses.

“MacroAsia continued to generate revenue growth across its key operating businesses during the first half of 2026, notwithstanding higher operating costs and the impact of lower associate earnings on first-half profitability,” MacroAsia president and COO Eduardo Luy said.

MacroAsia Corp. saw revenue growth, while direct costs rose faster by 13 percent to P4.22 billion, offsetting gains. As a result, the company’s consolidated gross profit decreased by 2 percent to P1.05 billion.

Likewise, operating expenses rose by 13 percent to P852 million due to higher business volumes and increased spending on manpower, leases and other operating requirements.

MacroAsia also saw its share in the net earnings of associates fall by 25 percent to P456.1 million from P611 million a year earlier.

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Lufthansa Technik Philippines Inc., its largest associate contributor, accounted for P411.2 million of its equity share in earnings, down from P537.8 million in the first half of 2025. This was primarily due to higher lease costs and expenses tied to the discontinuation of Lufthansa’s line-maintenance operations.

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Among MacroAsia’s operating segments, food services remained its largest revenue contributor, generating P2.63 billion, or about half of consolidated revenues. This was 12 percent higher year-on-year.

Ground handling and aviation services generated P2.25 billion, accounting for about 43 percent of consolidated revenues and marking an 8-percent increase from a year earlier. Flight-handling volume grew by about 2 percent despite cancellations affecting some Middle East routes.

Meanwhile, water operations generated P369 million in revenues, with billed water volume increasing by about 15 percent year-on-year.

Looking ahead, MacroAsia said it would focus on improving margins through customer rate adjustments, recovering higher airport-related costs and pursuing productivity and supply-chain improvements.

“For the balance of the year, our priorities are to improve margins through cost recovery and operating efficiencies, strengthen cash conversion and maintain disciplined execution of our growth investments,” Luy said. /pai