LBC Express, Inc. posted a 43% increase in net income of P413.870 million in the first six months of the year, an improvement on the P289.801 million registered in the same period last year.
Net income for the second quarter alone rose 5.8% to P196.466 million from P185.646 million in the same period in 2015, listed parent company LBC Express Holdings, Inc. disclosed to the Philippine Stock Exchange.
Service revenue for the first six months increased 10.5% to P4.134 billion from the P3.741 billion recorded in the same period last year, primarily due to higher revenue from its logistics business attributable to growth in both retail and corporate sales.
Revenue from the logistics segment grew 16.1% to P3.526 billion from P3.036 billion owing to growth in volume and hike in rate of air cargo services. The volume growth in services was mainly attributable to the horizontal expansion of the company as it added 24 new branches in the Philippines and one new branch in the Middle East that started operations between June 2015 and June 2016. The increase in cargo forwarding services for the period also contributed to volume growth.
Gross profit for the first six months increased 19.4% to P1.426 billion from P1.193 billion recorded in the first six months of 2015. The positive performance, LBC said, was the product of greater volume of air and courier services and improvement in freight charges.
The logistics, courier, and remittance service provider foresees the continued rise in volume and revenue for 2016. Earlier, group president and chief operating officer Miguel Camahort said volumes handled by sea, air, and land services have increased to around 200 tons a day, up 25% to 30% over 2015, and expects the trend to continue until the end of the year.
Growth, Camahort said, will come from the retail side, which accounts for more than 80% of total revenues.
The country’s economy has been growing very well and “communities are expanding,” which both mean room for expansion for LBC, he added.
Camahort said LBC is expanding its supply chain services for corporate accounts, which include warehousing, procurement, cold chain, inventory, and consolidation.
Initial figure for the two-year investment in this expansion plan is around P200 million.
In addition, he disclosed plans to double within the year the current 10,000 square meters of capacity at its six warehouses. LBC has two warehouses in Metro Manila, and one each in Cebu, Cagayan de Oro, Davao, and Northern Luzon.
