August 25, 2022

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LBC Express Holdings swings to nearly P132-million net loss

LISTED LBC Express Holdings, Inc. swung to losses in the second quarter of the year, primarily due to a decline in volume.

The company, which is involved in logistics and money transfer services, lost P131.86 million for the quarter, compared to an attributable profit of P170.83 million during the same period last year, its second-quarter financial performance results showed.

Second-quarter service revenue fell 6.9% to P3.78 billion from P4.06 billion previously.

“There was a negative growth for domestic logistics segment by 7%,” the company noted. “This is partly countered by the improvement in overseas sales by 6%.”

Meanwhile, cost of services declined 3.9% to P2.98 billion from P3.10 billion in the same period in 2021.

There was a “shortfall in volume leading to lower cost of delivery and remittance by 9%,” according to the company.

“Decreases were noted for trucking cost and contracted jobs while these were counterbalanced by the increase in domestic and international shipping lines and fuel rates.”

The company’s gross profit dropped 16.6% to P800.44 million from P960.12 million previously, “primarily attributable to decrease in volume and increase in cost of freight sea and fuel.”

For the first half of the year, LBC Express Holdings swung to an attributable net loss of P82.99 million from a profit of P310.56 million in the same period last year.

First-half service revenue declined 8% to P7.74 billion from P8.41 billion previously, “mainly from domestic logistics segment which were partially covered by 8% growth in sales from overseas as there was steady growth in air cargo volume and rate alignment in several countries.”

Meanwhile, cost of services for the period reached P6.03 billion, down 4.3% from P6.30 billion in the same period a year earlier.

The company attributed the decrease to “lower cost of delivery and remittance by 11%.”

Gross profit for the first six months decreased 19.8% to P1.70 billion from P2.12 billion previously, “primarily attributable to decrease in volume and increase in the cost of freight sea as well as fuel.” — Arjay L. Balinbin