LBC Express Holdings, Inc. reported a net loss of P499.15 million for the first half of the year from a net income of P58.32 million in the same period last year, the reversal largely the result of the impact of the COVID-19 pandemic on its retail and corporate customers.
The logistics and remittance services provider’s service revenues decreased 27% to P5.643 billion from P7.724 billion in the first half of 2019. The downturn is attributable to the fall in demand in the second quarter of 2020 when much of the world went on lockdown, LBC said in a regulatory disclosure.
In the second quarter alone, service revenues dropped 54% to P1.843 billion from P4.007 billion in the same quarter last year.
LBC said select branches were opened and delivery remained operational during the period, but lead times were extended due to safety, security and travel restrictions.
Cost of services dropped by 15% to P4.755 billion in the first half of 2020 from P5.585 billion in the same period last year, relative to lower volume of acceptance in the second quarter of 2020. Due to cancelled airline flights, LBC opted to use roll-on/roll-off services to transport cargoes from the National Capital Region to the Visayas and Mindanao and vice versa.
Despite the decrease in revenue, LBC’s fixed expenses such as salaries and wages and depreciation expense went up by 3% or P45.36 million and by 6% or P34.57 million, respectively. Operating expenses also increased by 2% or P27.48 million, mostly from advertising expenses, provision for expected credit losses and donations.
LBC has a network of over 6,400 branches, hubs and warehouses, partners, and agents in over 20 countries.
