2Go posts 62% jump in 9-month net profit

Screengrab from https://www.2go.com.ph/

MANILA, Philippines–2Go Group Inc. posted a 62-percent jump in its net profit after tax to P634 million in the first nine months of the year from P391 million a year ago despite the blistering effect of the port congestion brought about by the Manila daytime truck ban.

The company attributes the strong performance largely to higher revenues and stringent management of operating costs and expenses. This is also a result of synergies created by the increasing customers’ acceptance of the integrated service offerings of the different units within the group that provide seamless end-to-end supply chain solutions to their requirements.

2Go’s total consolidated revenue rose by P123 million to P10.65 billion this year from P10.53 billion in the same period last year. The group’s logistics arm has been steadily growing, further increasing its percentage to total revenues to 41 percent from 40 percent in 2013. The total logistics group posted a P165-million increase in revenue (consisting of service fees and sale of goods) during the period.

The shipping performance is weighed down by the 20-percent reduction in carrying capacity of its inter-island vessels. This, however, was offset by higher load factors for both the freight and passage business. The freight business increased its load factor from 70 percent to 85 percent while the passage business increased its load factor from 53 percent to 58 percent. Domestic tourism noticeably improved and had positive impact on volume of sea travelers.

During the period, the logistics group continued to introduce innovative service offerings such as forward stock locations to complement the cross docking services currently offered to major clients, to be serviced by its growing network of warehouses spread all over the country.

2Go Express’ partnership with FedEx continues to expand, showing a substantial growth in revenue most especially on the retail side.

Scanasia and 2Go Logistics continue to fortify their customer base by adding more Top 1000 corporations to their list of clients as well as increasing volume of their current clients.