2GO Group posted a P292-million net loss in the first quarter of 2021, 164% higher year-on-year, primarily due to economic slowdown brought about by the COVID-19 pandemic
Revenues for the first three months of the year declined 23%, with shipping revenue dropping 51% while revenues from logistics and other services increased 15%
Weaker consumer spending slashed distribution revenue by 22%
2GO Group, Inc. incurred a net loss of P291.798 million in the first quarter of 2021, 164% higher than the P110.595 million posted in the same period last year primarily due to economic slowdown brought about by the COVID-19 pandemic.
Revenues for the first three months of the year declined 23% to P3.987 billion from P5.161 billion in the same period last year, 2GO said in a regulatory disclosure.
Shipping revenue, comprising sea freight and travel revenue, declined 51% year-on-year. Apart from reduced economic activity due to the pandemic especially for travel, 2GO said the decline was driven by the planned maintenance of certain roll-on/roll-off, passenger vessels, which meant 24% fewer round trips year-on-year.
Revenues from logistics and other services, on the other hand, increased 15% to P1.442 billion from P1.251 billion last year due to growth from 2GO’s specialized reefer and isotank containers, international courier, and project logistics.
Distribution revenue declined 22% year-on-year owing to weaker consumer spending and changes to the product mix.
During the first quarter of 2021, the shipping segment accounted for 22% while non-shipping segment shared 78% of total revenue.
Cost of services and goods sold decreased 21% to P3.857 billion from P4.866 billion as a result of lower volumes for the shipping and distribution businesses, and 2GO’s continued efforts to improve efficiencies and control costs.
General and administrative expenses increased 7% year-on-year as 2GO invested in front-end track and trace and warehouse IT systems under its modernization plans. All other costs and expenses were generally maintained or reduced due to efficiency improvements and cost controls.
For 2021, 2GO said it will continue its corporate governance initiatives, and aims to expand and further enhance its service offerings to its customers and stakeholders.
2GO 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.
2GO has a fleet of 10 vessels servicing 20 major ports of call in the Philippines. It also has a network of either owned or leased warehouses in Bacolod, Butuan, Cagayan de Oro, Cebu, Davao, Dumaguete, General Santos, Iligan, Iloilo, Ozamis, Palawan, Zamboanga and Greater Manila Area.