2Go profit jumps 37%
2GO GROUP Inc., an end-to-end logistics service provider, sustained its growth streak by posting a 37-percent jump in net income before tax to P412.4 million in the first quarter of 2016 from P301.2 million a year-ago, its consolidated quarterly financial report showed.
2GO attributes the growth to innovations in its non-shipping business segment amid a growing economy driven by increased consumption.
“2GO unceasingly innovates to become the best enabler of the FMCG (fast moving consumer goods) industry as both manufacturers and retailers rapidly expand their network across the country” 2GO president and CEO Sulficio O. Tagud, Jr. said.
It sees a rosy future in the retail sector, which is seen to account for a fifth of the country’s GDP over the next decade.
2GO’s logistics solutions that cater to the needs of the fast-growing retail sector enabled customers to pursue expansion plans in new areas while replenishing inventory with speed yet at lower costs.
2GO’s customer base grew threefold owing to the company’s extensive logistics presence nationwide, said the management. Excluding courier services, the number of direct to retail outlet delivery points grew from 2,520 to 2,928.
2GO’s first-quarter revenue from the non-shipping group rose by 8 percent owing to the strong performance of its cold chain and isotank company, which grew to P316.8 million from 268.9 million. It was followed by the distribution business with P926.6 million, up from P818.5 million a year ago.
Operating costs and expenses grew by 4 percent, lower than the period’s growth in revenue.
