LBC Express Holdings Inc. moved into the red territory during the nine-month period ending September as higher interest expenses dragged down revenues.
In a regulatory filing, the courier service provider reported its net loss amounted to P127.82 million, a turnaround from a P215.23-million net income in the same period last year.
Interest expenses rose by 47 percent to P122.78 million from P83.72 million last year.
In September, the company obtained a short-term loan of P26.47 million from Rizal Commercial Banking Corp. and another P10 million from BDO Unibank Inc.
LBC said the borrowings were made to fund daily operations and capital expenditures.
Revenues slipped 3 percent to P10.58 billion as its retail business segment slowed down by 6 percent. Contribution from the corporate segment, on the other hand, was up 10 percent.
AI-backed logistics monitoring
“We will remain determined to drive productivity and profitability while investing in efficiency and our future growth,” LBC chief finance officer Enrique Rey Jr. said.
The company in June tapped the expertise of PLDT Group in improving logistics and customer services through the use of an artificial intelligence (AI)-backed platform monitoring parcel movement.
Through its partnership with PLDT Enterprise and information and communications technology arm ePLDT, LBC will be able to use FlutterFlow, a platform that can maintain and enhance applications catering to delivery riders and customers.
LBC has also been beefing up operations with the construction of a new warehouse, importation and installation of a sorting machine and acquisition of land.
The company mainly generates revenues from logistics services, which include domestic and international courier and freight forwarding by way of air, sea and ground transport. —Tyrone Jasper C. Piad