2GO posts P190-M profit ahead of delisting

MANILA  -Logistics service provider 2GO Group Inc. continued its momentum in the first quarter amid the increasing demand for shipping services that supported a double-digit revenue growth.

In its latest financial disclosure, the listed company reported that its net income in the first three months amounted to P190 million, a turnaround from a P35-million net loss in the same period last year.

Total revenues were up 29 percent to P5.18 billion for the period from P3.99 billion a year ago.

These were mostly accounted for by logistics and other service revenues at P1.71 billion or 3 percent more than P1.66 billion it had booked last year.

Freight revenue also accounted for a significant portion of the pie with P1.5 billion. This showed growth of 34 percent from P1.12 billion in previous year.

“2GO’s turnaround continues as it focuses on profitable services and customers, driving efficiencies in operations and stringent cost controls,” the company said.

Cost of services and goods sold rose by 25 percent to P4.58 billion in the first quarter due to higher volume and more expensive fuel prices.

General and administrative expenses, meanwhile, climbed by 8 percent to P262 million in the first three months because of “additional headcount to support the business and information technology investments to help drive scale and efficiencies.”

2GO was the biggest gainer in the local stock market in the first quarter as its share price soared by 97.79 percent during the period.

The company received shareholder approval last month for its voluntary delisting from the main board of the stock exchange and merger with Special Container and Value Added Services Inc. INQ