Swing to a net loss despite higher operating income for LBC Express Holdings Inc.
Logistics giant LBC Express Holdings Inc. recorded a net loss in the first semester, despite an increase in operating income due to foreign exchange losses absorption. The financial filing of LBC on Friday revealed a net loss of P190.95 million compared to a net income of P82.12 million the previous year.
Despite the net loss, there was an improvement in gross profit, rising by 3 percent to P1.53 billion. This improvement was attributed to enhanced efficiencies and cost rationalization efforts within the organization. However, LBC’s services revenues experienced a 3 percent decrease to P7.13 billion, mainly due to a decline in the retail segment. On the other hand, the domestic corporate segment saw an 11 percent growth. Operating income also increased by 14 percent, reaching P331.1 million.
« Controlling what we can » – LBC’s response to operational challenges
LBC underwent an « enterprise-wide » restructuring in its operations to better manage costs. This led to a 4 percent decrease in service expenses to P5.6 billion, thanks to reduced delivery, remittance, manpower, rent, and depreciation costs. The company also enhanced its capacity for parcel and package pickup services through its website and mobile app, while reducing brick-and-mortar stores.
Despite facing challenges beyond its control, such as global supply chain issues and logistical cost increases, LBC remains focused on what it can manage. Chief Financial Officer Enrique Rey Jr. mentioned that they are relentless in pursuing their targets amidst these challenges.
LBC’s expansion and service offerings
LBC, known for its money remittance services, operates over 1,500 branches in the Philippines and around 200 hubs and warehouses in 30 countries globally. The company recently introduced cash-on-delivery services to address non-paying buyers and prevent scams in online transactions. It also offers cash-on-pickup services to enhance security for both sellers and buyers, allowing payment upon package pickup at LBC branches.
LBC is capitalizing on the e-commerce trend through its mobile app, enabling clients to book deliveries and monitor the real-time status of their shipments.
Source : business.inquirer.net