Listed company 2Go Group, Inc. reported a net income of P273.63 million in the first quarter of 2015, a 103% increase from P134.99 million in the same period last year, owing largely to higher revenues and stringent management of operating costs and expenses.
Revenues increased 20% to P3.98 billion from P3.32 billion in the same period last year. Freight revenues jumped 17% to P1.475 billion from P1.262 billion, mainly due to higher volume arising from more round trips and improved routing initiative
s. The passage business likewise expanded 19% to P884.619 million from P741.007 million in revenue as the group continues to innovate and improve its service offerings.
The logistics group grew 29%, outpacing the 13% growth of the shipping group. It also noted that the shipping group benefited from the relatively low fuel prices during the period.
In a disclosure to the Philippine Stock Exchange, 2Go said it has “successfully transformed itself into a complete supply chain solutions provider and is now well positioned to address the needs of a growing Philippine economy that is driven by consumption and inter-island trade.”
The group’s growth “is now being propelled by these logistics and value-added services, with 2GO’s shipping operations providing a stable platform and a sustainable competitive advantage.”
It added, “The group is riding high with the improving domestic tourism industry that has a positive impact on the volume of sea travellers.”
Total costs and expenses for the group increased 15% during the period.
Moving forward, 2GO said it will capitalize on its competitive advantage of having a shipping component, which other logistics companies don’t have.
“This allows the group to gain the confidence of customers by assuring them of reliability in meeting their desired schedules,” the company said, adding that with its varied companies, it has the widest reach for both domestic and international transactions.
The group’s commercial approach is to strengthen its key accounts management, in which it will collaborate and partner with the group’s top customers and key clients.
“There is a noted increase in customers’ acceptance of the integrated end-to-end service offerings by the different units within the group that provide seamless supply chain solutions to their requirements,” 2Go said.
The group’s businesses are divided into the freight, passage, international logistics, and value-added services. Units include 2Go Freight, 2Go Travel, 2Go Supply Chain, 2Go Express, Inc., Hapag-Lloyd Philippines, Inc., Hansa Meyer Projects, Inc., 2Go Logistics, Inc., Scanasia Overseas, Inc., Kerry Logistics (Philippines), Inc., WRR Trucking Corp., The Supercat Fast Ferry Corp., NN-ATS Logistics Management & Holding, Co., Inc., and Special Container and Value Added Services, Inc. 2Go also owns shares in MCC Transport Philippines, Inc.
As of December last year, 2Go has a fleet of 21 vessels, of which 16 are company-owned. The fleet includes six fast craft, eight roll-on roll-off/passenger vessels, three freighters, and four chartered from third parties.
Ports of call include Bacolod, Batangas, Butuan, Cagayan De Oro, Calapan, Caticlan, Cebu, Davao, Dipolog, Dumaguete, General Santos, Iligan, Iloilo, Manila, Masbate, Odiongan (Romblon), Ormoc, Ozamiz, Puerto Princesa, Romblon, Tagbilaran, and Zamboanga.
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