2GO cuts net loss by 38% in 2021
Revenue fell 11% due to decline in shipping revenue
Logistics revenue rose 4%
2GO to address 2021 loss by modernizing fleet and investing in IT systems
The 2GO Group cut its net loss by 38% to P1.14 billion in 2021 from the P1.84 billion net loss in 2020.
2GO and its subsidiaries trimmed their losses in 2021 from the previous year by focusing on profitable customers and services and through stringent cost controls, the integrated transportation and logistics service provider said in a regulatory disclosure.
2GO said it intends to address the 2021 loss by modernizing its fleet and investing in IT systems.
Revenue slipped 11% to P15.41 billion in 2021 from P17.41 billion in 2020.
Shipping revenue, comprising sea freight and passenger travel revenues, eased 1%. Seafreight revenue grew 12%.
The group said revenue growth was offset by a 48% drop in passenger travel revenue resulting from quarantine-related travel restrictions in 2021, compared with 2020, when January and February enjoyed unrestricted pre-pandemic travel.
Last year, 2GO acquired two large roll-on/roll-off passenger (RoPax) vessels, MV 2GO Maligaya and MV 2GO Masagana, as part of the group’s fleet modernization plan. These replaced two retiring RoPax vessels.
Revenue from logistics and other services went up 4% due to growth in 2GO’s cold chain reefers and ISO tank containers, e-commerce fulfillment, and international courier businesses.
Distribution revenue, meanwhile, slumped 29% due to weaker consumer spending and changes to product mix.
For the year 2021, shipping accounted for 25% of total revenue while non-shipping made up 75%.
Cost of services and goods sold decreased 15% due to lower volumes from the distribution business and 2GO’s efforts to improve efficiencies and control costs, mainly transport and delivery expenses.
General and administrative expenses increased mainly due to provisions for doubtful accounts and computer charges for new IT systems.
As of 2021, 2GO and its subsidiaries owned and operated a fleet of nine vessels, consisting of eight RoPax vessels and one freighter, with a combined gross registered tonnage of 126,695 tons and total annual passenger capacity of around 2 million passengers and aggregate annual cargo capacity of about 300,000 twenty-foot equivalent units.