Listed 2GO Group, Inc. reported an 11.58% improvement in net income to P568.97 million in the first half of the year from P509.906 million year-on-year. This is in spite the 5.7% dip in revenues to P7.246 billion from P7.683 billion.
In a disclosure to the Philippine Stock Exchange, 2Go said revenue from its freight business dropped 15.15% to P2.42 billion in the first half from P2.852 billion in the same period last year, the result of a 20% reduction in the carrying capacity of its inter-island vessels due to higher average selling prices.
Even with the reduction, revenue from its passage business grew a slight 0.23% to P1.881 billion from P1.876 billion.
“The cutthroat competition and rate-cutting practices of the discount airlines during the period dampened the performance of the passage business but not enough to pull down the revenue numbers,” 2Go said.
Its non-shipping business, which includes logistics and distribution, “continues to perform well due to various service upgrade initiatives and deliberate focus on key domestic and international accounts.”
The logistics arm reported an increase in revenue of 41% this year compared with the 38% growth last year, while Scanasia, the company’s distribution arm, posted an 11% hike in revenue for the first six months.
During the same period in review, 2Go Express’ partnership with FedEx shifted into high gear, according to the company. Moreover, 2Go Logistics and Scanasia beefed up their roster of clients with the addition of more top 1000 corporations.
Total operating costs and expenses declined 6% to P6.491 billion from P6.902 billion last year, attributed mainly to a decrease in fuel costs and stringent cost management.
For the first half, the shipping business contributed 59% of the revenues, and non-shipping business the rest.
2Go said this showed its supply chain business was “rapidly growing and transforming to drive the group to become a total logistics solutions provider”.
Earlier, Jose Manuel Mapa, 2Go vice president for group relations management and central sale, told PortCalls the group acquired two new vessels—one ropax (MV St. Xavier) and one freighter (MV San Lorenzo Ruiz)—that boosted its fleet to 20, of which eight are cargo vessels.
The carrier also added 200 containers, and 200 boxes more are expected for the year.
Mapa said 2Go is currently developing an off-dock container yard in a three-hectare area at Harbor Centre. – Roumina Pablo
Photo from www.2go.com.ph
