LBC profits jump 379% in Q1

LBC Express Holdings Inc. reported reported a 379 percent surge in net income to P209.78 million in the first quarter of 2023 from P43.76 million in the same period last year despite lower revenues.

In a disclosure to the Philppine Stock Exchange, the firm said the jump in earnings is mainly attributable to decrease in cost and expenses as well as non-operating gains from foreign exchange and derivative valuation.

LBC’s service revenue decreased by 4 percent to P3.78 billion for the first quarter of 2023, from P3.96 billion in the comparative period of 2022.

The decline is mainly from the drop in the domestic logistics segment by 9 percent, partly covered by a 2 percent growth in sales from overseas due to recovery of favorable rates in some countries.

Cost of services is down by 3 percent to P2.97 billion for the three months ended March 31, 2023, from P3.05 billion for same period of 2022, due to improvement in cost of delivery and remittance by 4 percent.

Reduction in air freight costs and manpower were aligned to current sales volume. However, these reductions were offset by the surge in cost of freight-sea as general price increase was implemented by shipping lines, both in domestic and overseas setting, several times mid-2022.

Other charges, net decreased to P27.39 million for the three months ended March 31, 2023, from P218.18 million, largely because of the foreign exchange gains amounting to P67.40 million compared to losses amounting to P5.11 million last year. These gains were mostly related to the valuation of the bond payable.

Further, valuation of derivative resulted to gain of P34.55 million for the three months ended March 31, 2023, from loss of P115.74 million for the three months ended March 31, 2022.