PHILIPPINE logistics provider 2Go Group Inc. turned around to net profit of P510 million in the first half of the year from last year’s loss of P403,926, mainly due to higher revenue and a further reduction in its operating costs and expenses.
“The 2GO Group has transformed itself into the largest supply chain enterprise in the country today,” group president and chief operating officer Sulficio O. Tagud said.
Revenue for the first six months increased 12% to P7.68 billion from the P6.88 billion reported for the same period in 2012.
Revenue for the second quarter rose 13.8% to P4.2 billion from P3.6 billion.
Earnings before interest, tax, depreciation, and amortization for the first half surged 78.2% to P1.27 billion from P277 million in 2012.
However, freight revenue for January to June declined 3% year-on-year to P2.79 billion from P2.87 billion.
For the second quarter, freight revenue also dropped 10.9% to P1.22 billion from P1.37 billion.
Revenue for the passenger business in the first half increased 7.34% to P1.7 billion from P1.58 billion in the same period in 2012 despite “cutthroat competition and rate cutting (by) discount airlines,” the company said.
Passenger revenue for the second quarter climbed 13.1% to P1.2 billion from P1.04 in the same period earlier.
2GO said its logistics arm expansion increased the segment’s contribution to total revenue to 42% from 35% in 2012.
Meanwhile, 2GO’s non-shipping businesses, largely logistics and supply chain solutions, rebounded 31% as a result of various service upgrade initiatives and a deliberate focus on key domestic and international accounts, the group said.
“We will continue to undertake serious steps to further solidify our competitive position by rapidly expanding our logistics arm with the objective of increasing customer traffic and solidifying our leading position within the areas where we operate,” Tagud said.
In 2012, the group cut its net loss 61.74% to P386,214 from P625,604 in the previous year, feeling the positive impact of the merger between ATS Consolidated Inc. and Negros Navigation Co. Inc. two years ago.