LBC profit grows 91% to P1.34 B

Published May 24, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

LBC Express Holdings, Inc., the country’s foremost logistics brand, reported a 91 percent surge in net income to P1.34 billion last year from P707.92 million in 2017.

LBC logo

In a statement, the firm said the strong performance is mainly due to an increase in volumes and the recognition of gain from derivative, amounting to P454.20 million, which compensates the loss incurred in 2017.

The Group’s service revenues increased by 25 percent to P12.51 billion in 2018 from P10.02 billion the previous year, attributable to 25 percent growth in Retail Logistics Sales and 35 percent in Corporate Logistics Sales.

In 2018, LBC expanded operations by acquiring one domestic and nine international entities engaged in money remittance, and online and regular logistics services.

Net contribution to revenue from these business combinations amounted to P889.79 million or 36 percent of the total increase.

There is also continuous growth in the domestic business, evidenced by the opening of 76 additional retail branches and the introduction of new products mid-2018, with total contribution of these to total revenue amounting to P123.67 million.

Improvement in the corporate/institutional segment of the Group is also noteworthy, as it expanded its e- commerce directed logistics and warehousing services, while likewise maintaining its annual growth of corporate/institutional accounts.

In 2018, the Logistics business of the Group accounts for approximately 92.3 percent of its total revenues while Money Transfer Services accounts for the remaining 7.7 percent.

Retail Logistics comprised 62% of the Group’s service revenue, primarily its “Express” products (courier and air cargo forwarding) and balikbayan boxes.

In 2018, service fees from international inbound remittances was P163.22 million, accounting for 17 percent, of the Group’s total service revenues from Money Transfer Services.

Service fees from domestic Money Transfer Services was P799.5 million, representing 83 percent, of the Company’s total Money Transfer Services.