MACROASIA Corp. said it swung to a net loss last year after a sharp decline in its revenues caused by the coronavirus pandemic’s impact on travel and tourism.
The listed company suffered an attributable net loss of P1.59 billion in 2020 versus the P1.13-billion profit logged in 2019, its annual report filed with the stock exchange on Wednesday showed.
“The net loss after tax for 2020 includes provisions amounting to P902.5 million, related to impairment provisions like expected credit losses and other provisions to comply with financial reporting standards,” the company noted.
Its total revenues last year dropped 63.40% to P2.26 billion from P6.17 billion in 2019.
The company’s in-flight catering business contributed 42% of the total revenues.
The catering business’s revenue fell 67.27% to P950.9 million. “The decline in revenue is aligned with the decline in meal count by 67% from 13.8 million to 4.5 million due to the decline in demand for air travel as a result of the COVID-19 pandemic,” the company noted.
Meanwhile, revenues from ground-handling and aviation services dropped 63.12% to P1.04 billion. Flights it handled declined by 124,990 (-63%), from 197,079 in 2019 to 72,089 in 2020.
The company said ground-handling and aviation services revenues contributed 46% of the total revenues.
MacroAsia saw its revenue from water operations, which contributed 10% of the total revenues, fall 36.6% to P221.42 million. “This decline is attributable to the downturn of commercial water sales in Boracay, as the island was impacted by the tourism closure due to COVID-19 restrictions and termination of bulk water supply contract of SUMMA in Marilao, Bulacan,” it said.
“The water businesses in other areas grew significantly, but such growth was not enough to offset the significant drop in billed volume in Boracay and Marilao. Billed volume of water in cubic meters (cu.m.) declined by 16% from 7.79 million cu.m. in 2019 to 6.50 million cu.m. in 2020,” MacroAsia noted.
MacroAsia shares closed 2.06% higher at P4.95 apiece on Wednesday. — Arjay L. Balinbin