Logistics and remittance firm LBC Express Holdings, Inc. reported a 58 percent drop in net income to P201.22 million last year from P475.82 million in 2019 as the pandemic resulted in lower revenues.

In a disclosure to the Philippine Stock Exchange, LBC said service revenues dipped 7 percent to P14.12 billion in 2020 from P15.21 billion in the previous year due to decreased demand during the worldwide lockdowns in the second quarter of the year.

It noted that the lockdowns impacted its retail and corporate customers in local and overseas operations.

Earnings were also weighed down by 5 percent higher depreciation and amortization related to the increase in amortization of right-of-use assets and additional capital expenditures for new branches and warehouses.

Bottomline was also affected by an increase in salaries and benefits by 2 percent relative to the manpower for new warehouses and branches while operating expenses increased mostly from pandemic-related expenses including medical and sanitation supplies, testing kits, medical professional fees, shuttle bus rentals and donation of face masks. 

The Group’s branches remained open and delivery services operational last year, however with extended lead times, due to safety, security and varied travel restrictions.

Revenues recouped by the third and fourth quarters, with consumer demand increasing, and subsequent normalization of operations. 

LBC said it has embarked on a recovery plan with the aim to rebalance and reposition its services toward new consumer needs and behaviors, and rapidly innovate its services and capabilities to leverage on the accelerated shift of consumers to e-commerce.With this, LBC has been expediting its digital services both for retail and corporate customers.