Pandemic hands 2GO P1.8B net loss in 2020

0
2463
File photo from 2GO Express, Inc.
  • 2GO Group Inc. incurred a net loss of P1.8 billion last year, 107% higher than its P892 million net loss in 2019 primarily due to reduced economic activity from the COVID-19 pandemic
  • Total revenues decreased 19%, with most business units registering a decline except distribution, which saw an increase of 2%
  • Travel revenues declined 78% to P839.139 million in 2020 due to quarantine-related travel restrictions
  • Freight revenues dropped 10% to P3.025 billion, while revenues from logistics and other services went down 13% to P5.826 billion

2GO Group, Inc. incurred a net loss of P1.8 billion last year, 107% higher than the P892 million net loss in 2019 primarily due to the reduced economic activity brought about by the COVID-19 pandemic.

Revenues decreased 19% to P17.409 billion last year from P21.41 billion in 2019, the end-to-end logistics service provider said in a regulatory disclosure. Of the total revenues, the non-shipping business accounted for 78% while the rest were from the shipping business.

2GO said its various business units have been significantly affected by quarantine restrictions imposed since last year, resulting in limited business operations in Luzon and in many other parts of the country for most of 2020.

Travel revenues declined 78% to P839.139 million in 2020 from P3.741 billion in 2019 due to ongoing quarantine-related travel restrictions which began in mid-March and persisted throughout the rest of the year.

Freight revenues dropped 10% to P3.025 billion from P3.361 billion.

Revenues from logistics and other services went down 13% to P5.826 billion from P6.707 billion, with the steepest declines occurring from March to May when most of the country was placed under enhanced community quarantine.

Revenues from distribution were also affected by the pandemic, but registered a 2% increase due to the full-year effect of two principals added in the latter half of 2019.

Cost of services and goods sold fell 14% to P16.857 billion from P19.655 billion in 2019 due the lower volumes handled by the shipping and logistics businesses as well as the group’s efforts to improve efficiencies and control costs. General and administrative expenses were also 2% lower year-on-year.

The group incurred about P113 million in COVID-19 related expenses last year, which was mainly spent on personal protective equipment, shuttle services, and allowances for its employees.

2GO said that throughout 2020, it continued to improve and adapt its suite of services given the evolving operating conditions caused by the pandemic.

For 2021, it will continue its corporate governance initiatives and enhancement of its service offerings. The group plans to further streamline operations and collaborate within its business units, invest in warehousing and logistics information technology solutions for customers, and improve synergies and best practices with its new shareholders.

As of December 2020, 2GO and its subsidiaries own and operate a fleet of nine operating vessels, consisting of eight roll-on/roll-off passenger vessels and one freighter. It also has a network of either owned or leased warehouses in Bacolod, Butuan, Cagayan de Oro, Cebu, Davao, Dumaguete, General Santos, Iligan, Iloilo, Ozamis, Palawan, Zamboanga and Greater Manila Area.