2GO Group’s net loss of P601 million in the first six months of 2021 is 18% lower than last year’s
The loss is primarily due to continued slowdown in the economy brought about by the COVID-19 pandemic
Revenues declined 14% as passenger travel and distribution recorded decreases
Freight and logistics revenues gained 16% and 7%, respectively
2GO Group, Inc. incurred a net loss of P601 million in the six months of 2021, 18% lower than its P733 million loss year-on-year.
The loss is primarily due to the continued slowdown in the economy brought about by the COVID-19 pandemic, 2GO said in a regulatory disclosure.
Revenues declined 14% to P7.791 billion from P9.089 billion in the first semester of last year.
Shipping revenue, comprising sea freight and passenger travel revenue, decreased 13% year-on-year, driven by a 69% drop in passenger travel revenue as a result of continuing quarantine-related travel restrictions and the planned maintenance of some roll-on/roll-off passenger vessels.
These decreases were offset by a 16% increase in freight revenue to P1.584 billion from P1.370 billion, said 2GO.
Revenue from logistics and other services also expanded 7% year-on-year to P2.896 billion from P2.712 billion due to growth from 2GO’s specialized reefer and ISO tank containers and international courier businesses.
Distribution revenue dropped 28% due to weaker consumer spending and changes to the product mix.
For the first half of 2021, shipping accounted for 23% of total revenue and non-shipping, 77%.
The cost of services and goods sold decreased 15% to P7.538 billion in the first half of 2021 from P8.884 billion in the same period last year due to lower volumes of the distribution business and 2GO’s efforts to improve efficiencies and control costs.
General and administrative expenses, on the other hand, rose 7% year-on-year to P758.833 million from P710.530 million, as 2GO invested in front-end track and trace and warehouse information technology systems as part its modernization plans. All other costs and expenses were generally maintained or reduced due to improvements in efficiencies and a focus on controlling costs, the company noted.
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.
The company currently serves 20 major ports of call in the Philippines and 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.