Supply chain solutions provider 2Go Group, Inc. reported a 6% increase in net income for the first quarter of 2016, boosted by the positive performance of its non-shipping businesses.
In a disclosure to the Philippine Stock Exchange, 2Go said net income for the first three months of the year reached P290.926 million, up from P273.633 million in the same period in 2015.
Total consolidated revenue likewise improved 5% to P4.17 billion from P3.98 billion last year.
The group attributed the performance to “the focused drive to grow its various businesses led by its non-shipping group and supporting this with stringent cost management.”
Revenue from freight grew 2% to P1.041 billion from P1.016 billion previously due to higher volume arising from more round trips and optimized routing initiatives. Passage revenue rose 5% to P933 million from P887 million as the group continues to improve service offerings.
“The Group continues to ride high with the improving domestic tourism industry that has a positive impact on the volume of sea travellers,” 2Go noted.
The non-shipping business, largely logistics and supply chain solutions, posted a 6% rise in revenue as a result of various service upgrade initiatives and deliberate focus on the growth of key domestic and international accounts. Under the non-shipping group, the cold chain and ISO tank business reported an 18% revenue increase, while port services improved 14%, distribution 13%, and logistics 3%.
2Go said the group is “now ready and well positioned to address the needs of a growing Philippine economy that is driven by consumption and inter-island trade.”
It added it expects to see in 2016 and beyond a repeat of, if not an improvement on, the positive performance last year.
The forecast is based on several factors including growth of the service industry, the main growth driver for the country’s economy as well as 2Go’s logistic operations.
Another contributing element is the increasing demand for fast-moving consumer goods, which is a service that most of 2Go’s clients are engaged in. Also, all of the company’s business units gained headway in securing accounts from targeted new businesses. Likewise, favorable projections for the Philippine logistics industry and the continued decrease in global fuel prices are seen to help business.
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