Logistics giant LBC Express Holdings saw a big boost in profit last year on the back of a nonrecurring gain and as business activity picked up.
LBC, in its 2018 annual report, said net income almost doubled to P1.35 billion versus about P708 million in 2017.
LBC said profitability rose alongside volume.
Moreover, it recognized a gain on derivative amounting to P454.2 million, a consequence of fluctuating share prices linked to a convertible instrument issued in 2017.
Overall, its core logistics business remained healthy with service revenues up 25 percent to P12.5 billion last year.
LBC noted that during this period, both retail and corporate segments rose 25 percent and 35 percent, respectively.
Moreover, the group last year expanded its footprint in money transfer services. It acquired one domestic and nine international money transfer, online and regular remittance entities. It said net revenue contributions here hit P889.8 million, up 36 percent.
“There is also continuous growth in the domestic business, evidenced by the opening of 76 additional retail branches and the introduction of new products mid-2018, with total contribution of these to total revenue amounting to P123.67 million,” LBC noted.
“Improvement in the corporate/institutional segment of the group is also noteworthy as it expanded its e-commerce directed logistics and warehousing services, while likewise maintaining its annual growth of corporate/institutional accounts,” the company added.
LBC Express was initially established as Luzon Brokerage Corp. in the 1950s before transforming into a full-service delivery company. Today, it provides courier and freight forwarding services in 22 countries and inbound remittances from over 30 countries.