2GO erases losses after economy reopens

Logistics service provider 2GO Group Inc. returned to profitability last year after booking a robust revenue growth supported by the economy’s rebound.

In a disclosure on Thursday, the SM Investments Corp. subsidiary reported it realized profits amounting to P312 million last year, a turnaround from the P1.14-billion net losses in 2021.

Top line figures, meanwhile, grew by 25 percent to P19.3 billion following the easing of mobility restrictions.

“Improving market conditions aided volume momentum in shipment of goods while the holiday season boosted passenger numbers,” 2GO explained.

Revenues from logistics and other services were supported by growth in cold chain services, forwarding, e-commerce fulfillment and international courier segment.

Several factors

“Our 2022 growth was the result of high demand for our services with the opening … of the economy while our increased profitability was also driven by the structural changes and financial discipline we have put in place,” 2GO president and CEO Frederic DyBuncio said.

“These changes are fully ingrained in all parts of the business and will benefit us in the long term. We are optimistic about [our] ongoing momentum in 2023,” he added.

2GO had invested in automated sorting and transport management systems to better handle operations amid rising demand for its services.

It had also acquired two roll-on, roll-off passenger vessels as part of its fleet modernization plan.

“Additionally, we continued to make bold investments as opportunities arose during the pandemic. Our aim remains to be the best in-class logistics and transportation provider in the Philippines,” DyBuncio said.

2GO is an end-to-end transportation, logistics and distribution service provider in the country.