Home » 3PL/4PL, Ports/Terminals » 2GO carves 8% income hike on 82% jump in e-commerce sales

Integrated transport services provider 2GO Group, Inc. posted an 8% increase in first quarter 2017 net income to P267.6 million from P290.9 million year-on-year despite the hefty rise in energy costs.

In a disclosure to the Philippine Stock Exchange, 2GO said that despite high fuel prices, operating income from its core business rose by 8% to P516.4 million from P478.3 million last year owing to the strong performance of all revenue streams, led by the e-commerce business, which posted a 72% jump in revenue.

Total consolidated revenues improved 17% to P4.9 billion from P4.2 billion, with the non-shipping segment contributing 52% of the total and the rest provided by the shipping segment.

The group’s non-shipping businesses, largely logistics and supply chain solutions (consisting of logistics, distribution, cold chain and isotank, port, international freight forwarding, and other services), posted a 17% increase in revenue during the period due to expanded service offerings, coupled with the increased wallet share of 2GO ]?[ with its major accounts.

The shipping group likewise posted an 18% increase in revenue mainly due to higher volumes and better vessel utilization for both cargo and passenger vessels. Freight volume rose by 8% while passenger volume went up by 10% for long-haul trips.

2GO said it continues to innovate to adapt to a competitive landscape that continues to evolve and modernize.

It noted three globally proven drivers of trade modernization happening in the Philippines today: retailer expansion has shifted to small formats as seen in the proliferation of 24/7 convenience stores; accelerated gross domestic product growth, especially in the upper middle class, has boosted personal consumption, which in turn is leading to greater gains for the fast-moving consumer goods industry; and continued urbanization and sectorization, which is bringing growth beyond Metro Manila to key cities in Visayas and Mindanao.

“It is in this context that 2GO is offering its integrated supply chain platform to provide a unique proposition, that is, to enable limitless growth for its customers. The over-riding approach is based on the principle of creating value for its customers: engage customers at tactical and strategic levels; collaborate, design and implement solutions to complex challenges; and expand into other relevant, fast growing sectors,” the company explained.

2GO is the largest logistics provider in the Philippines, offering an array of logistics and travel services and with links to over 150 countries. It owns and operates brands such as 2GO Travel, 2GO Freight, 2GO Express, and 2GO Logistics.

Image courtesy of hywards at FreeDigitalPhotos.net

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