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2GO Group posted a net loss of P938.809 million in the first nine months of 2021, lower than the P1.043 billion net loss recorded year-on-year
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Revenues likewise declined 16% as shipping revenues dropped 9%
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Revenues from logistics and other services grew 2%
2GO Group, Inc. reported a net loss of P938.809 million in the first nine months of 2021, lower than the P1.043 billion net loss recorded in the same period last year.
The net loss is primarily due to the continued slowdown in the economy brought about by the COVID-19 pandemic, the integrated transportation and logistics service provider said in a regulatory disclosure.
Revenues likewise declined 16% to P11.501 billion in the first nine months of this year from P13.690 billion in the same period in 2020.
Shipping revenue, which comprises seafreight and passenger travel revenues, decreased 9% year-on-year in the first nine months of 2021 due to the 66% drop in passenger travel revenue as a result of the continuing COVID-19-related travel restrictions and planned maintenance of certain 2GO roll-on/roll-off passenger vessels. Passenger travel revenues were down to P281.787 million from P834.818 million last year.
The decline was, however, offset by the 12% increase in freight revenues to P2.501 billion from P2.229 billion.
Revenues from logistics and other services rose 2% year-on-year to P4.39 billion from P4.293 billion due to growth from 2GO’s specialized reefers and ISO tank containers, e-commerce fulfillment, and international courier businesses.
Distribution revenue, meanwhile, declined 32% due to weaker consumer spending and changes to product mix.
For the first nine months of 2021, shipping revenues accounted for 24% of the total, while non-shipping revenues shared 76%.
Cost of services and goods sold decreased 15% to P11.545 billion from P13.615 billion due to lower volumes of the distribution business and 2GO’s efforts to improve efficiencies and control costs, which also resulted in a 7% drop in general and administrative expenses to P723.074 million from P778.117 million.
For 2021, 2GO said it will continue its corporate governance initiatives, and expand and further enhance its service offerings to its customers and stakeholders. It plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices with its new shareholders.
Earlier, 2GO said it was going to invest P150 million to modernize the company through enabling technology to meet customers’ future demands that are critical in the new normal.
2GO currently services a total of 18 ports of call nationwide. In July 2021, it expanded its port coverage to Tagbilaran City in Bohol with weekly services to increase regional connections. 2GO also added frequency to Davao and General Santos to boost local economies in Southern Mindanao.
As of June 30, 2021, 2GO has served and delivered a total of 97,173 twenty-foot equivalent units using its containerships. In 2020, 2GO delivered over 198,000 TEUs.
