2GO back in the black as demand for service surges

Logistics service provider 2GO Group Inc. registered a P240-million profit in the January to September period on the back of higher revenues from its core operations.

The latest figure showed a turnaround from a net loss of P939 million in the same period last year, 2GO said in a disclosure on Thursday.

Third quarter net income reached P166 million, which was also a reversal from a P338.12-million net loss a year ago.

“The strong performance was driven by continued growth across major business lines with a focus on the quality of revenue and customers combined with efficiencies in operations and controlled costs,” the SM Investments Corp. subsidiary explained.

Total top line figures improved by 20 percent to P14 billion in the January to September period.
Shipping revenues were up 68 percent as the volume of shipments of goods increased.

Cold chain services, forwarding and e-commerce fulfillment, meanwhile, drove logistics and other service revenues up by 28 percent for the period.

“The normalization of economic activity in the Philippines is fueling a demand for more transportation and logistics services to move goods and people across the country,” 2GO president and CEO Frederic DyBuncio said.

In May, 2GO said it had invested in automated sorting and transport management systems to better handle operations amid rising demand for its services. It also recently acquired two roll-on roll-off passenger vessels as part of its fleet modernization plan.