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LBC Express Holdings saw a net loss of P56.77 million in the first nine months of 2020 from a net income of P379.36 million year-on-year
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For the third quarter, service revenues grew 6% to P3.99 billion from P3.76 billion last year due to net increase in logistics revenue from higher retail sales
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Cost of services declined 13% to P7.35 billion in first nine months of the year from P8.43 billion in 2019 amid lower volumes accepted in second quarter
LBC Express Holdings, Inc. incurred a net loss of P56.77 million in the first nine months of 2020 from a net income of P379.36 million in the same period last year, as revenues shrank from the impact of the COVID-19 pandemic on the company’s retail and corporate customers.
The logistics and remittance service provider’s service revenues decreased 16% to P9.63 billion for the January-September 2020 period from P11.485 billion in the same period last year.
The downturn in revenue is attributable to the fall in demand during the worldwide lockdown in the second quarter of the year as a result of the COVID-19 pandemic, LBC said in a regulatory disclosure. The group had kept selected branches opened and delivery remained operational during that period, but lead times lengthened due to security and travel restrictions.
For the third quarter alone, however, service revenues grew 6% to P3.99 billion from P3.76 billion in the same quarter last year, primarily due to the net increase in revenue from the logistics segment, attributable to higher retail sales, which expanded 33%.
Cost of services was also reduced by 13% to P7.35 billion in the first nine months of the year from P8.43 billion in the same period in 2019 amid lower volumes accepted in the second quarter.
Operating expenses, however, grew 2% to P2.08 billion from P2.04 billion, caused by the rise in provision for expected credit losses considering the impact of the pandemic on clients and the timing of collection. LBC also incurred expenses for, among others, medical and sanitation supplies, testing kits, medical professional fees, shuttle bus rentals, and donations of face masks during the period in response to the pandemic.
LBC has a network of over 6,400 branches, hubs and warehouses, partners, and agents in over 20 countries.
