Logistics group LBC Express Holdings saw a 145-percent year-on-year surge in attributable net profit amounting to P541.36 million in the first quarter.
The three-month profit increase was driven by higher volumes in both retail and corporate logistics, lower operating expenses, higher foreign exchange and other treasury gains alongside one-time gains from the business combination with LBC Mabuhay Saipan Inc.
Including earnings attributable to minority interest, LBC’s first-quarter net profit rose by 147 percent year-on-year to P563.82 million.
Service revenues increased by 12 percent year-on-year to P2.75 billion as the company reported growth in retail and corporate logistics by 14 percent and 18 percent, respectively.
Revenues from logistics segment improved by 16 percent year-on-year to P2.52 billion for the quarter, driven by the 34-percent volume growth.
The growth was supported by the expansion of LBC’s footprint. There were 72 retail branches added in the Philippines alongside continuous growth of volumes from small-and-medium enterprise (SME) clients. Moreover, LBC branches in the Middle East introduced local/domestic courier services (analogous to LBC services offered in the Philippines), in turn gaining positive customer response and augmented sales volumes.
Other income swelled to P245 million for the first quarter from P4 million for the same period last year, largely due to higher foreign exchange gain, gain on derivative, and gain on bargain purchase resulting from the business combination with LBC Mabuhay Saipan.
Meanwhile, operating expenses declined by 9 percent year-on-year to P477 million. —DORIS DUMLAO-ABADILLA