2GO incurred a net loss of P1.04 billion in the first nine months of 2020, 7% higher than its loss last year
Revenues reached P13.7 billion, down 16% from a year ago due to reduced economic activity stemming from the COVID-19 pandemic
2GO’s sales fell 16% year-on-year, and COVID-19 related expenses amounted to P102 million
Shipping and logistics service provider 2GO Group, Inc. incurred a net loss of P1.04 billion in the first nine months of 2020, 7% higher than the P972 million loss it recorded in the same period last year.
Revenues for January to September 2020 period reached P13.7 billion, down 16% from P16.22 billion posted last year, due to reduced economic activity brought about by the COVID-19 pandemic, 2GO said in a statement.
Shipping revenue decreased 45% to P3.06 billion from P5.58 billion in the first nine months of 2019.
Passenger revenues were also dragged by quarantine-related travel restrictions that began in mid-March and continue to persist, 2GO said.
Revenues from logistics and other services dropped 15% to P4.29 billion from P5.02 billion due to a slowdown in transport volumes, particularly in the second quarter when Metro Manila and most of the country were under enhanced community quarantine.
Distribution revenue, on the other hand, increased 13% year-on-year.
Shipping revenues accounted for 22% of the total revenue, while non-shipping revenue still contributed the biggest share at 78%.
Costs of services and goods sold fell 12%to P13.37 billion from P15.17 billion, while general and administrative expenses decreased 13% to P1.02 billion from P1.18 billion.
For the first nine months of 2020, 2GO experienced a year-on-year sales reduction of 16% or about P2.5 billion.
2GO also incurred P102 million in COVID-19 related expenses which went primarily to employee personal protective equipment, transportation and allowances. Expenses were recorded when two roll-on/roll-off passenger vessels were converted into quarantine facilities in April and May to assist in the government’s pandemic efforts.
The group foresees a decline in sales/revenue even in the subsequent months beyond the lifting of quarantine measures, as effects of the lockdowns are expected to continue limiting business operations and economic activities.
2GO said collections, particularly receivables from small and medium scale enterprises, are also expected to suffer, which may necessitate making provisions for estimated losses.
It said it has activated its business continuity implementation plan and taken steps to manage the risk of disruption to its operations, and continues to monitor the domestic and international markets for developments that could impact sales and operations.