LBC Express Holdings, Inc., the Philippines’ largest logistics and money services company, reported a 15 percent growth in service revenues to P16.25 billion last year from P14.12 billion in 2020.
In a disclosure to the Philippine Stock Exchange, the firm said it “continues to move through adversities brought about by the COVID-19 pandemic, and the effects created, and gave rise to globally-challenging issues.”
However, LBC said it remains optimistic, moving forward toward recovery in this “new normal” as it continues to adapt and adjust its services and capabilities, while ensuring a healthy and safe environment for its employees and customers.
LBC said it is keeping the momentum from increases gained in the last quarter of 2020, with 96 percent of revenues yield from theits logistics business.
About 77 percent or P12.54 billion of total service revenues was generated from the retail logistics segment, which includes LBC’s courier, air cargo and balikbayan box services.
Corporate logistics, which includes the Company’s Business Solutions, freight forwarding, and e-commerce services, produced 19 percent of total revenues equivalent to P3.1 billion.
A larger share of LBC’s revenues continue to come from its domestic business, covering 66 percent or P10.04 billion; while its international business produced P5.61 billion equivalent to 34 pecent of total revenues.
Cost of services increased in 2021 to P12.64 billion from P10.65 billion in 2020, due to the higher volumes of acceptance.
LBC said its operating expenses increased by 31 percent to P3.51 billion in 2021 from P2.68 billion in 2020, due mostly to the Group’s pandemic response.
The firm said it has continued in its efforts to mitigate the spread of the Covid-19 virus among its ranks, and to the customers it serves through its vaccination program, and continuous disinfection protocols.
Also in 2021, the Company opened additional fully operating warehouses and sorting facilities, to ensure social distancing for its operations group.
The ripple effect from the global supply chain crisis severely affected costs due to fluctuating prices in the global market.
“The Company expects, however, that as soon as expenses related to Covid-19 are diminished as the global pandemic continuous to wane, its operating income will vastly improve in the forthcoming periods,” LBC said.
It added that, “Better conditions within the global logistics market will likewise also improve as supply chains and fuel prices are stabilized.” LBC ended 2021 with a net loss of P854 million, driven largely by the effects in the increase of its derivative loss from its convertible instrument.
Also weighing down profitability is the increased operating expenses, higher depreciation and amortization by 12 percent related to increase in amortization of right-of-use assets and additional capital expenditures for new branches and warehouses.