The 2GO Group, Inc. recorded a net loss of P291 million in the first quarter of 2019, a reversal from the net income of P38.437 million achieved in the same period last year.
The group’s revenue increased by 11% to P5.886 billion in the first three months of 2019 from P5.301 billion in the same period last year due to the gross presentation of certain revenue streams in 2019 as required by the new revenue accounting standard.
Shipping revenue, which consists of freight and travel, decreased 6% primarily due to increased competition in the freight segment. 2GO earlier said the overcapacity and competition in the freighter market continued to push down freight rates.
Revenue from non-shipping (logistics and distribution), on the other hand, increased 10%, driven by growth in courier, e-commerce, cold chain and ISO tanks, and distribution businesses.
For the period, shipping accounted for 36% of the group’s total revenue while non-shipping represented 64%. Costs of services and goods sold increased 20%, primarily driven by rising fuel and commodity prices and increased sales of inventory from the group’s distribution business.
2GO noted that fuel prices in the first quarter of the year increased 19% compared to the same period last year. General and administrative expenses decreased 9% as 2GO continued initiatives to control costs.
For 2019, 2GO said it will continue its corporate governance initiatives, and will expand and further enhance its service offerings to its customers and stakeholders. It plans to achieve these objectives through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices with its new shareholders.
“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” the company said.
