Courier and remittance company LBC Express Holdings, Inc. (LBCEHI) reported a net income of P442.586 million for the first half of 2017, which is 6.9% higher than the P413.870 million posted in the same period last year.
Service revenues grew, rising 18.7% to P4.910 billion in the first six months of the year compared to the P4.135 billion earned in the same period last year.
LBCEHI, in a disclosure to the Philippine Stock Exchange, said the growth in service revenues was spurred by higher revenues from its logistics segment, attributable to improved retail and corporate sales, which grew by 19.3% and 32.8%, respectively.
Revenues from the logistics segment grew 23.8% to P4.364 billion from P3.526 billion as a result of the growth in volume of air cargo, sea cargo, and courier services rendered. LBC attributed the volume increase to the horizontal growth of the company, evidenced by the net addition of 62 branches in the Philippines. This growth also raised LBC’s volume from cargo forwarding services and the number of new clients acquired during the period.
For the second quarter alone, net income jumped 3.6% to P214.776 million from P207.339 million in the same quarter a year ago.
Service revenues for the second quarter amounted to P2.451 billion, or 18.5% up from P2.068 billion last year, also due to the growth in revenues from the logistics segment.
Given the momentum, LBC in an earlier statement said it is ensuring continued growth by focusing on tailored services for the logistics market, consistent e-commerce initiatives, and the adding of new technologies and systems for more efficient freight forwarding operations.
LBC currently operates in over 20 countries, with a network of over 1,200 branches in addition to 5,300 partner agents. It said it is steadily trying to expand its reach both domestically and globally.
In the Philippines, it operates three main hubs for sea cargo in Manila, Clark, and Cagayan de Oro, and has 78 delivery hubs, with a team of 1,410 delivery associates and over 6,000 employees across the country.
LBC said it has gone deeper into third-class municipalities while also expanding its network in key cities.
Besides the 48 branches opened in 2016, LBC is planning to launch more this year in untapped areas where express delivery service is critical.
LBC is also launching initiatives to improve operations and services across the Association of Southeast Asian Nations regional market, where it expects increased regional economic activity to prompt demand for its services.
It has likewise made recent expansions and enhancements in the Middle East, including opening a bigger and better warehouse in the United Arab Emirates, and adding new services like deferred payments among partners for added convenience.
