2GO Group, Inc. posted a net income of P201.126 million in the first half of 2018, a 68% improvement from the P120.075 million it earned in the same period in 2017 as its non-shipping businesses recorded higher revenues.
For the second quarter of 2018 alone, net income declined 58% to P160.216 million from P384.983 million in the same quarter of 2017.
The group’s revenue from January to June 2018 declined 3% to P10.752 billion from P11.134 billion in the first half of last year. Revenues from its shipping business dropped 12% to P4.144 billion from P4.716 billion previously, primarily due to dry-docking for refurbishment and repairs and maintenance of eight vessels during the first half of 2018. Shipping revenues were also affected by the weather, which led to cancelled voyages during the six-month period. Further, 2GO said that “the overcapacity and competition in the freighter market continued to push down freight rates across the shipping industry.”
In addition, revenue from sea travel was “comparable to the prior period despite a 5% reduction in capacity due to scheduled drydocking.”
2GO said revenues from its non-shipping business, including logistics and distribution, increased by P190 million, driven by the improved service offerings to existing strategic customers, addition of new customers, and overall focus on customer service. The non-shipping business accounted for 61% of the total revenue in the first half of 2018, up from the 58% contribution in the same period last year.
Total cost and expenses went down 1% despite rising fuel prices and increased sales of inventory from its distribution business.
For 2018, 2GO said it will continue its corporate governance initiatives and aims to expand and further enhance its service offerings to its customers and stakeholders.
“The group plans to achieve streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders,” 2GO said.
“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” it added.
