2Go Group, Inc. posted a 50% increase in net income in the first half of the year, propelled by the positive performance of its logistics and value-added services businesses.
In a disclosure to the Philippine Stock Exchange, 2Go reported that its net income from January to June 2015 grew to P854.437 million from P568.970 million in the same period last year.
Revenue for the first half reached P8.554 billion, up 22% from last year’s P6.999 billion. The group said net income before tax has breached the one-billion peso mark with P1.2 billion, a 94% improvement over the P620.3 million in the same period last year.
Similarly, group operating income from its core businesses reached P1.3 billion, 73% up from P755.3 million during the same period last year.
Freight revenues jumped 19% to P1.808 billion from P1.525 billion last year, mainly due to higher volume arising from more round trips and optimized routing initiatives. Revenue from the passage business likewise expanded 14% to P2.133 billion from P1.874 billion. 2Go Travel continues to ride high as the improving domestic tourism industry puts a positive impact on the volume of sea travellers, the group said.
It also noted the benefit from the relatively low fuel prices during the period in review.
Revenue from 2Go’s non-shipping businesses also grew 28% to P4.612 billion from P3.600 billion last year. 2Go’s non-shipping businesses include logistics, distribution, cold chain and isotank services, port services, and international freight forwarding.
With the rapid expansion of the group’s non-shipping businesses, 2Go said the revenue mix has further shifted to 54% non-shipping and 46% shipping from 51% non-shipping and 49% shipping.
“The phenomenal growth of 2GO can be attributed to the focused drive to expand all the business units within the Group by targeting double-digit increases in revenues and supporting this with stringent cost management,” 2Go said.
The group expects the “very impressive performance for the first half of 2015 to continue, if not perform even better during the 2nd half of 2015.”
The forecast was developed based mainly on the following positive factors: all business units within the group are already geared up to attain or even surpass its targeted numbers; all business units have an extensive list in their pipeline from which the revenues can be secured from; and the second half of the year (particularly the fourth quarter) is normally the peak season for logistics companies in preparation for the holidays.
Other positive developments for the company include the favorable economic projections for the Philippines for the second half of 2015, and continued decline in global fuel prices.
“All these positive factors will contribute to the projected remarkable performance of the Group for the second half of 2015,” 2Go said.
It added that it is currently focusing on developing the right strategy, structure, and processes to provide its customers with end-to-end supply chain solutions as well as aligning its service delivery functions and processes to improve efficiency and cost.
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