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Friday, March 29, 2024

LBC Express says profit fell 54% to P549m in 1st half

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Logistics service provider LBC Express Holdings Inc. registered a net income of  P549 million in the first six months of 2019, down 54 percent from P1.195 billion year-on-year.

LBC Express in a disclosure to the stock exchange over the weekend attributed the lower first-half earnings to a net loss from one of the acquired entities in 2018, reduced foreign exchange gain and higher depreciation and interest expenses due to the first-time adoption of a new accounting standard.

Service revenues, however, rose 36 percent to P7.84 billion in the first six months of the year from P5.78 billion a year ago, due to higher increase sales both from the logistics and remittance segments by 27 percent and 11 percent, respectively.

LBC Express attributed the higher sales to the opening of 75 new retail branches, introduction of new products and contribution from newly-acquired businesses.

The logistics company in 2018 purchased several overseas affiliates as part of a plan to expand its international business and consolidate all foreign outlets under the company.

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Meanwhile, cost of services increased 39 percent to P3.8 billion as the higher growth in volume in logistics and remittance business resulted in more delivery costs. Gross profit jumped 30 percent to P2.5 billion.

Net income     in the second quarter reached P541 million, down 13.4 percent from P625 million on year.

Second-quarter service climbed 35 percent to P4 billion primarily due to an increase in revenues from the logistics business, both in retail and corporate segments.

Shareholders of LBC Express during the recent stockholders’ meeting approved the re-filing of a registration statement related to the company’s planned share sale of up to 69.1 million in common shares.

The company plans to use the net proceeds from the fund raising activity to finance expansion plans.

LBC Express this year plans to open between 70 and 100 branches across the country.

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