By James A. Loyola
Top logistics firm LBC Express Holdings, Inc. reported a 36 percent hike in service revenues to P7.85 billion for the first half of 2019 from P5.78 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said “this growth was principally due to the increase in revenues from both the logistics and remittance segments by 27 percent and 11 percent, respectively.”
Business acquisitions from July 2018 onward contributed revenue of approximately P1.92 billion for the six-month period.
The total Retail segment of the business grew by 43 percent, with Retail Logistics alone increasing by 50 percent. Corporate Logistics and Money Remittance grew by 22 percent, with the corporate segment accounting for a staggering 231 percent increase.
LBC’s domestic business remains robust, evidenced by a 20 percent revenue increase, and with the opening of 75 retail branches since the same period of the previous year.
The Domestic segment also saw the introduction of new products mid-2018, contributing to its favorable performance.
Gross profit was favorable by 30 percent to P2.55 billion for the period ended June 30, 2019 from P1.96 billion from the previous year, primarily due to the increase in revenue amounts for domestic logistics services and the impact of business combination.
Net income after tax was at P548.95 million for the six-month period ended June 30, 2019 from P1.19 billion for the same period ended June 30, 2018.
Net income from operation rose 10 percent to P798.71 million from P728.69 million but gain on derivative was lower by P410.94 million, attributable to the convertible instrument.
The firm also said foreign exchange gain was also lower by P125.80 million while net loss from one of the acquired entities in 2018 amounted to P206.61 million.