Philippine integrated transport services provider 2GO Group, Inc. reported a 24% increase in net income to P1.34 billion in 2016 from P1.08 billion in 2015 due to sustained topline growth coupled with improved cost savings.
In a statement, 2GO said total consolidated revenues in 2016 rose 17% to P19.28 billion from P16.42 billion in 2015, driven primarily by the non-shipping segment.
Non-shipping revenues grew 30% to P10.32 billion as a result of increased service offerings and improved market share from the firm’s major accounts. With its robust growth, the non-shipping business continues to account for a higher share of total revenues with 54% in 2016, up from 48% in the previous year.
Shipping revenues, meanwhile, grew 6% to P8.96 billion, thanks to higher volumes as well as improved vessel turnaround for both large and medium-sized roll-on/roll-off passenger and freight vessels.
Revenues from the freight business went up 1% to P5.015 billion from P4.963 billion in 2015, while revenues from passage recorded a 12% increment to P3.941 billion from P3.524 billion.
Logistics posted a 48% growth in revenues to P4.671 billion from P3.152 billion. Revenues from the isotank and cold chain business were 21.8% higher at P1.424 billion than the P1.17 billion previously recorded.
Revenues from port services likewise rose 9.3% to P153.532 million from P140.438 million, while revenues from international freight forwarding jumped 21% to P46.946 million from P39.323 million.
Total costs and expenses grew by only 15% at P16.74 billion on account of cost efficiency measures and relatively low fuel prices during the year.
2GO is the largest logistics provider in the Philippines with links to over 150 countries. It owns and operates brands such as 2GO Travel, 2GO Freight, 2GO Express, and 2GO Logistics, offering an array of logistics and travel services.
Services include international shipping, international freight forwarding, customs clearance, domestic shipping for freight and travel, warehousing, land transport, express, projects, and XTrade.
2GO recently saw 34.5% of its shares acquired by holding company SM Investments Corporation. SMIC bought the stake from Negros Navigation, Inc., 2GO’s parent firm, for US$124.5 million.
Dennis Uy—president and CEO of diversified holding company Udenna Corporation, the parent firm of Phoenix Petroleum Philippines, Inc.—was recently named the group’s president and CEO, replacing Sulficio Tagud, Jr., who retired from the company. Aside from Tagud, other members of 2GOs’ board resigned last February and were replaced by new members.