LBC Express posts P168.19M income in 2023 from 2022 loss

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Photo courtesy of LBC Express.
  • LBC Express Holdings posted a net income of P168.19 million in 2023, a reversal from the P543.24 million loss in 2022
  • The turnaround last year was mainly from growth in gross profit margin by 2% and favorable valuation of derivative liability
  • Service revenue decreased 4% year-on-year to P14.514 billion in 2023
  • Revenue from logistics dropped 5% to P13.826 billion while revenue from money transfer services grew 9.7% to P687.49 million

LBC Express Holdings, Inc. (LBCEHI) posted a net income of P168.19 million in 2023, a reversal from the P543.24 million loss in 2022.

The turnaround last year was mainly from the growth in gross profit margin by 2% and favorable valuation of derivative liability, the logistics and money transfer services provider said in a regulatory disclosure.

Service revenue decreased by 4% to P14.514 billion in 2023 from P15.19 billion in 2022.

The logistics business accounted for approximately 95% of the group’s total revenue in 2023 while the remaining 5% were money transfer services.

Revenue from logistics dropped 5% to P13.826 billion in 2023 from P14.563 billion in 2022.

Revenue from money transfer services, on the other hand, grew 9.7% to P687.49 million from P626.86 million in 2022.

Gross profit improved by 6% to P3.045 billion in 2023 from P2.866 billion for in 2022 primarily attributable to reduction of cost of services.

Cost of services went down by 7% to P11.468 billion in 2023 from P12.323 billion in 2022, as a result of improvement in cost of delivery, remittance, and manpower cost by 9% and 6%, respectively, aligned to the decline in current sales volume and cost rationalization initiated by the management.

Utilities and depreciation also went down mainly due to closure of unproductive branches and continued consolidation of warehouses.

LBC 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.

READ: LBC Express turns profit in first half