MANILA -LBC Express Holdings Inc. swung to profitability in the first half despite booking lower revenues, thanks to lower costs and expenses and the absence of foreign exchange losses.
In its latest financial disclosure, the logistics service provider reported its first-half net income attributable to shareholders of parent company amounted to P84.31 million, a reversal from P82.99-million net loss a year ago.
Total service revenues for the period slid by 5 percent to P7.38 billion from last year’s P7.74 billion due to lower contribution by the logistics segment, which fell by 5 percent to P7.08 billion from P7.45 billion a year ago.
Money transfer service revenues, meanwhile, climbed by 3 percent to P296.9 million for the period from P287.68 million in the previous year.
Its logistics businesses include domestic and international courier and freight forwarding services by way of air, sea and ground transport. The money transfer business meanwhile, comprises remittance services, bills payment collection and corporate payout services.
The bottom line was supported by lower cost of services, which declined by 3 percent to P5.87 billion in the first half.
“Further, air freight cost declined significantly as the company utilized more on roll-on roll-off services, rather than airlines,” LBC explained.
Operating expenses declined by 4 percent to P1.21 billion for the period.
Meanwhile, it also registered foreign exchange gains of P56.48 million in the first semester, a turnaround from a P111.6-million loss a year ago.
As of end-June, its total assets and equity stood at P14.63 billion and P1.83 billion, respectively.
LBC said it was expecting a pickup in cargo throughput and remittance volume during the Christmas season due to holiday spending.
The listed company has been beefing up its operations with the construction of a new warehouse, importation and installation of a sorting machine and land acquisition.