2GO still unprofitable, but less so

Despite dwindling revenues, integrated transport and logistics provider 2GO Group Inc. trimmed its net loss to P1.14 billion last year from P1.84 billion in 2020, thanks to lower cost of services and goods sold.

In its annual report, 2GO disclosed that its topline figures fell by 11.49 percent to P15.41 billion from P17.41 billion in the previous year.

Last year’s revenues were dragged down by the travel segment of its shipping business, which slid by 47.84 percent to P437.69 million, from P839.14 million in 2020. The sale of goods under its nonshipping revenues also declined by 28.87 percent to P5.49 billion from P7.72 billion in 2020.

Freight revenues were up 12.21 percent to P3.39 billion while the logistics segment saw its revenues rise by 4.46 percent to P6.09 billion for the period.

As cost of services and goods sold declined by 15 percent to P14.81 billion, 2GO managed to book P594 million in gross profit last year. This marked a turnaround from P33.46 million worth of gross loss in 2020.

As of end-December 2021, total assets and total liabilities amounted to P12.92 billion and P12.28 billion, respectively.

2GO announced last year its P150-million investment to upgrade IT systems amid the growing e-commerce sector.

With the use of an automated sorting machine, the company said it could process over 140,000 parcels daily. It also deployed new warehouse and transport management systems to improve its inventory monitoring.

In June last year, SM Investments Corp., the country’s largest conglomerate, increased its shareholding in 2GO to 52.85 percent via a special block sale.

The logistics company’s services include warehousing and distribution, cold chain solutions, domestic and international ocean and air forwarding services, customs brokerage, project logistics and express and last mile package and e-commerce delivery.

—Tyrone Jasper C. Piad INQ