2GO cuts net loss by 88% in 1Q

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Image from 2GO Group, Inc.
  • 2GO cuts net loss by 88% in 1Q
  • The company’s first quarter net loss amounted to P35 million from P292 million year-on-year
  • The drop in losses was achieved through stringent cost controls and focus on profitable services and customers
  • Revenue dropped slightly by 0.1%
  • Shipping revenue grew 53%, logistics and other services revenue rose 14%, while distribution revenue dropped 40%

2GO Group, Inc. cut its net loss by 88% in the first quarter of 2022 to P35 million from P292 million in the same period in 2021.

The company attributed the reduced losses to stringent cost controls, a focus on profitable services and customers, and drive toward efficiencies in operations.

Revenue for the first three months dipped by 0.1% to P3.991 billion from P3.995 billion year-on-year.

Shipping revenue rose 53%, as both sea freight and travel gained traction. Logistics and other services revenue likewise grew 14%, boosted by the growth in cold chain reefers, e-commerce fulfillment and international courier services.

Distribution revenue, on the other hand, declined 40% due to slowing house consumer demand.

Cost of services and goods sold was 9% lower in the first quarter of this year due to lower volumes from the distribution business and through efforts to improve efficiencies and cost controls, mainly transport and delivery expenses.

“As the economy continues on its path towards recovery, 2GO looks forward to the return of travel and tourism. Our ships and port operations have been upgraded in preparation for this to provide passengers with an enhanced onboard and terminal experience. We are optimistic that our continued modernization efforts will further improve service standards and drive profitability,” 2GO president and chief executive officer Frederic C. DyBuncio said in a statement.

New RoPax vessels

2GO recently invested in two modern vessels, MV 2GO Masagana and MV 2GO Maligaya, the largest roll-on/roll-off passenger vessels in the country.

READ: 2GO launches largest, most advanced RoPax vessel

The two ships were instrumental in delivering 500 tons of relief goods as well as transporting critical utilities equipment and personnel in the regions affected by Typhoon Odette, the strongest typhoon that hit the country last year, the company said.

As of 2021, 2GO and its subsidiaries own and operate a fleet of nine operating vessels, consisting of eight RoPax vessels and one freighter, with a combined gross registered tonnage of approximately 126,695 and total annual passenger capacity of approximately two million passengers and aggregate annual cargo capacity of approximately 300,000 twenty-foot equivalent units.