2GO 2014 profit soars by 271% to P843M
MANILA, Philippines–2GO Group Inc.’s net profit after tax jumped by 271 percent to P843 million in 2014 from P227 million in the same period the previous year. This was attributed largely to the company’s successful transformation into a complete supply chain solutions provider.
For the first time in its history, 2GO’s operating income had breached the P1-billion mark, posting a hefty 136 percent increase to P1.2 billion in 2014 from P490 million in 2013.
The strong financial performance was achieved despite the congestion problems caused by the Manila Daytime Truck Ban.
“In 2014, we continue to reap the benefits of the transformation of the group into a complete supply chain solutions provider from largely a shipping company. We have noted an increase in customers’ acceptance of the integrated end-to-end service offerings by the different units within the group that provide seamless supply chain solutions to their requirements,” Sulficio O. Tagud Jr., president and CEO of 2GO Group, said.
“We will continuously improve and synchronize our operations to develop an implementation roadmap in order to fulfill our vision of being the Philippines’ integrated supply chain service provider of choice,” Tagud added.
2GO’s total consolidated revenues rose by P1 billion to P14.4 billion in 2014 from P13.4 billion a year ago. Its logistics arm (non-shipping) has been steadily growing, further increasing its percentage share to total revenues from 42 percent in 2013 to 46 percent in 2014. During the period, the logistics group introduced innovative warehouse service offerings such as operating forward stock locations in key areas to complement the cross docking services currently being offered to major clients in North and South Luzon.
It has widened its network of warehouses in strategic locations throughout the country to provide innovative distribution solutions to its customers. 2GO Express’ partnership with FedEx continues to expand, showing a substantial growth in revenues most especially on the retail side.
2GO Express has become the favorite last-mile fulfillment partner for the fast growing e-commerce industry. Furthermore during the year, Scanasia and 2GO Logistics have enabled more and more clients, through its expanded logistics and distribution platform, to cover a wider network of modern retail trade throughout the country.
