• 2GO Group swung to a net income of P190 million in the first quarter of 2023 from a net loss of P35 million in the same period last year
• Shipping revenue grew 52% year-on-year while revenue from logistics and other services went up 3%
• For 2023, 2GO aims to expand and further enhance its service offerings to its customers and stakeholders
2GO Group, Inc. swung to a net income of P190 million in the first quarter of 2023 from a net loss of P35 million in the same period last year.
Revenue in January to March 2023 increased 29% to P5.2 billion from P4 billion in the same period last year. Shipping, comprising sea freight and passenger travel, accounted for 39% of the total while non-shipping shared the bulk at 61%.
Shipping revenue grew 52% year-on-year as a result of 37% rise in sea freight revenue and 140% higher passenger travel revenue during the period.
Revenue from logistics and other services went up 3% Y-o-Y driven by continued growth in cold chain, e-commerce fulfillment, and courier services. Distribution revenue likewise improved 42% Y-o-Y due to increasing demand from consumers.
Cost of services and goods sold increased 25% to P4.578 billion from P3.656 billion due to higher volumes across the business and higher fuel prices.
In a regulatory disclosure, 2GO said its “turnaround continues as it focuses on profitable services and customers, driving efficiencies in operations and stringent cost controls.”
For 2023, 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 said 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.
“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” 2GO said.
2GO, a subsidiary of SM Investments Corp. (SMIC), provides integrated transportation and logistics services with five business units, namely, 2GO Sea Solutions, 2GO Special Containers, 2GO Logistics, 2GO Express, and 2GO Distribution.
Last February, SMIC said it is set to undertake a tender offer for up to 378.817 million common shares of 2GO to take the group private. SMIC completed the tender offer from March to April, acquiring 352.691 million common shares for a total transaction value of P5.163 billion.
RELATED READ: SMIC completes tender offer for 2GO shares
As of December 2022, 2GO and its subsidiaries own and operate a fleet of nine operating vessels, consisting of eight roll-on/roll-off/passenger (RoRo/Pax) vessels and one freighter. Its fleet has a combined gross registered tonnage of approximately 126,695, total annual passenger capacity of approximately two million passengers, and aggregate annual cargo capacity of approximately 300,000 twenty-foot equivalent units.
Currently, five RoRo/Pax vessels call on Manila as their homeport. Three medium-sized vessels call Batangas as their homeport, plying on the Batangas-Caticlan-Odiongan and the Batangas-Romblon-Roxas routes. 2GO also operates one purely-cargo vessel, with Manila as its homeport, to complement its freight business.
