LISTED Philippine logistics firm 2GO Group Inc. generated a profit of P381.232 million in the first nine months of 2013, reversing from a loss of P342.953 million in the same period a year ago, largely due to higher revenues and further reductions in its operating costs and expenses.
Revenue for the first three quarters grew 3% to P10.420 billion from P10.111 billion in the same period last year, despite a reduction in its vessels’ carrying capacity.
The group’s logistics arm recorded a 55% increase in revenue from 35% in the same period last year, 2GO said in a disclosure to the Philippine Stock Exchange.
Revenue from freight, however, tumbled 40.61% to P2.603 billion in January-September from P4.382 billion in the same period in 2012. Its passenger business also slowed 3% to P2.113 billion from P2.16 billion in 2012.
2GO’s shipping business posted a 28% drop in consolidated due to fewer vessels in operation.
“There were more vessels drydocked this year as compared to last year,” 2GO said, taking note of the sinking of its vessel, MV St. Thomas Aquinas, off Cebu City in August this year after being rammed by MV Sulpicio Express Siete.
The group said the decline in its shipping businesses was offset by growth in non-shipping services.
Its logistics service rebounded 61% as a result of upgrades and a focus on key domestic and supply chain solutions, as well as various international accounts.
Despite the increase in revenue, group operating costs and expenses slipped to P9.8 billion from P10.3 billion last year, which 2Go attributed to “stringent cost management and control as well as the realization of synergies arising from the integration of Negros Navigation and the 2GO Group.”
2GO and Negros Navigation integrated in 2010.
“The Group continues to undertake serious steps to further solidify its competitive position by rapidly expanding its logistics arm with the objective of increasing customer traffic and solidifying its leading position within the areas where it operates,” 2Go said.
2GO said it would continue to strengthen its cost improvement plan that was being implemented this year, which has been a huge contributor in the overall positive performance of the group despite the big decrease in vessel capacity.
Likewise, steps are being made to regain 2GO’s lost capacity to grow the business substantially again starting next year.
The 2GO Group is a total logistics solutions provider of resources including warehousing, inventory management, domestic and international express mail and courier services, sales distribution and merchandising, domestic freight services for full/ less container load shipments, ISO tank, reefer and cold chain services, heavy lift and project logistics, regular liner passenger service, corporate/leisure travel and package tours, and international freight forwarding and brokerage – all through its three main strategic business units, namely, logistics, express, distribution, shipping & passage, and international logistics. ––Roumina M. Pablo
Photo from www.2go.com.ph