By Perfecto T. Raymundo, Jr.
QUEZON CITY — Manila Water marked a significant milestone in 2024, achieving an 88% increase in net income to ₱10.5 billion.
This exceptional performance was driven by robust topline growth in the East Zone Concession and a substantial positive contribution from its Non-East Zone Philippines (NEZ PH) businesses.
Complementing these revenue gains was the company’s ongoing cost management and operational efficiency initiatives which played a crucial role in enhancing profitability.
As a result, Manila Water closed the year with a record-high EBITDA of ₱25.9 billion, reflecting a four-percentage-point improvement in EBITDA margin to 71%.
Beyond these gains in profitability, Manila Water maintained its disciplined approach to portfolio management, recognizing non-recurring items related to business divestments and impairment provisions.
Excluding these elements, core net income surged by 48% to ₱14.2 billion, with core net income margin rising by eight percentage points to 39%.
On a consolidated level, total revenues grew by 19% to ₱36.6 billion, supported by increased billed volume and the implementation of tariff adjustments in the East Zone Concession and several NEZ PH businesses.
Meanwhile, the company’s efficiency-driven approach helped contain total costs and expenses, which ended the year at ₱11.8 billion.
Manila Water’s East Zone Concession posted a 20% increase in revenues to ₱28.8 billion, largely driven by the implementation of the second tranche of the Rate Rebasing tariff adjustment in January 2024 and further supported by steady consumption growth across all customer segments. EBITDA increased by 22% to ₱20.7 billion, with EBITDA margin improving to 72%.
Beyond the East Zone Concession, the company’s NEZ PH business had a banner year in 2024, with earnings soaring more than threefold to ₱2.3 billion from ₱750 million in the previous year.
This impressive performance was fueled by an 8% increase in billed volume, tariff adjustments, and stronger contributions from key business units, pushing revenues past ₱9.0 billion.
On the other hand, Manila Water International experienced lower contributions from its minority investments in Thailand and Vietnam.
The company continues to closely assess its international portfolio while continuing to explore opportunities for long-term value creation.
Manila Water continued to invest in critical infrastructure to fulfill its regulatory and service commitments.
Group-wide capital expenditures (CAPEX) reached ₱26.3 billion in 2024, with the East Zone Concession accounting for 90% of total CAPEX at ₱23.6 billion.
These investments underscore the company’s focus on ensuring sustainable water supply and wastewater coverage, while continuing the rollout of service improvements for its growing customer base.
As part of its disciplined portfolio management strategy, Manila Water executed several strategic divestments in 2024.
Specifically, the sale of its Bulacan businesses under NEZ PH generated gains of ₱894 million, reinforcing the company’s commitment to capital recycling and value realization.
To reflect current market conditions and investment outlook, Manila Water likewise recognized impairment provisions amounting to ₱4.5 billion, covering its legacy investments in East Water (Thailand) and Saigon Water (Vietnam).
This consolidated recognition ensures a clear and comprehensive assessment of the company’s portfolio strategy.
Reflecting on the company’s strong performance, Manila Water President and CEO Jocot de Dios said “The solid foundation laid in recent years allowed us to achieve remarkable results in 2024. I am particularly buoyed by the solid growth of our Non-East Zone businesses, which more than tripled earnings to surpass the Php2.0 billion mark. The work we do with government and water district partners in Laguna, Boracay, Cebu, Clark as well as the communities served by our Estate Water Group, continues to propel us to do better outside of our core East Zone business which has also shown stellar results.”
“Volumes have been increasing while water losses have been receding. We will continue to improve services, drive operational efficiencies and create more value to our shareholders and stakeholders,” de Dios added.
