LBC Express Holdings, Inc. reported a net income of P256.96 million for the first nine months of 2021, reversing its P56.77-million net loss in the same period last year
The income was mainly driven by higher volumes during the period
Revenues from the logistics segment grew 29%, fuelled by sales from both existing branches and 75 new ones
LBC Express Holdings, Inc. (LBCEHI) reported a net income of P256.96 million for the first nine months of 2021, mainly driven by higher volumes and a reversal from the P56.77-million net loss incurred in the same period last year.
Service revenue from January to September 2021 increased by 28% to P12.317 billion from P9.631 billion in the same period last year, LBCEHI said in a regulatory disclosure.
The company said the improvement in revenue was mainly from the logistics segment, which grew 29%.
The increase in logistics revenue from both the domestic and overseas markets was driven by the improvement in sales performance of existing branches after the easing of worldwide quarantines last year.
There were also 75 new Philippine retail branches that contributed additional volume.
Cost of services rose 28% to P9.427 billion from P7.384 billion last year. Operating expenses likewise went up by 2% to P2.079 billion from P2.041 billion, primarily caused by the increase in utilities and supplies, which accounted for medical and sanitation supplies and test kits for the period; increase in commission expenses; increase in software maintenance cost and subscription expenses; and increase in transportation expenses, driven by the shuttle rental costs for employees working onsite during the community quarantine.
LBCEHI earlier said the group has embarked on a recovery plan focused mainly on rebalancing and repositioning services toward new consumer needs and behaviors. It also aims to rapidly innovate its services and capabilities to leverage the accelerated shift of consumers to e-commerce.
With this, the group has been expediting its digital services for both retail and corporate customers.
Last November 8, the LBCEHI Board approved the investment of P2 billion in wholly owned subsidiary LBC Express, Inc. to contribute to the logistics and remittance service provider’s continuous business operations.
LBC Express will use proceeds of the additional investment to refinance some of its maturing obligations and fund its working capital requirements, including payment of taxes and related costs and expenses.
The group currently has a network of over 1,500 branches in the Philippines, over 300 hubs and warehouses, and thousands of partners and agents in over 30 countries.