Manila Water exits bottled water business

Stiff market competition has forced Manila Water Co. Inc. to quit the bottled water business after five years.

In a disclosure on Wednesday, the Ayala-led utility said subsidiary Manila Water Total Solutions Corp. (MWTS) would close its Healthy Family purified water business for good on October 31 because of “recurring losses and inability to financially sustain business operations.”

“While the Healthy Family Business Division has, in recent years, made strong efforts to improve operations and profitability, the ever-increasing competition in the bottled water industry and recent economic challenges have proved too difficult to cope and keep the business afloat,” it explained.

Its website says Healthy Family is a five-gallon bottled water with a shelf life of up to six months. It uses a fully automated, “closed-loop” production system that eliminates human intervention to prevent water contamination.

Despite the closure, MWTS will continue to offer water, wastewater and environmental services.

In its latest quarterly report, Manila Water said Healthy Family sold 1.8 million bottles of drinking water in the first semester of 2020, down 37 percent from 2.9 million in the same period a year ago.

Despite efforts to be cost-efficient, Healthy Family ended the period with a net loss of nearly P25 million. As a result, MWTS incurred a net loss of P46 million.

Manila Water shares gained 88 centavos or 6.66 percent to end at P14.10 each on Wednesday.

Source: TheManila Times