2GO Group, Inc. incurred a net loss of P188 million in the first half of 2019, down from a net income of P197 million for the same period in 2018 as shipping revenues continue to decline and cost of services increased.
The group’s revenues increased to P12 billion in 2019 from P11.423 billion in 2018, the 5% rise primarily due to the growth of the non-shipping business, 2GO disclosed to the Philippine Stock Exchange.
Revenues from the shipping business, which consisted of freight and travel, dropped 1% to P4.868 billion from P4.929 billion primarily due to increased competition in the freight segment, partially offset by increased travel revenue.
Revenues from the non-shipping segment, which included logistics and distribution, rose 10% driven by growth in courier, e-commerce, cold chain and ISO tanks, and distribution.
For the first half of 2019, the non-shipping segment continued to account for a higher share of the total revenues with 59%, up from 57% in the same period last year. The shipping segment, meanwhile, contributed 41% of the total, down from 43% in the first half of 2018.
Cost of services and goods sold increased 9.7% to P11.145 billion from P10.157 billion primarily due to rising fuel and commodity prices during the period, and increased sales of inventory from the distribution business. Fuel prices during the period went up by 10%, and the group was impacted by a negative price variance of P139 million. General and administrative expenses, on the other hand, were generally kept at bay due to focus on controlling 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.
As of end-2018, 2GO and its subsidiaries have a total fleet of 27 operating vessels, of which 23 are company-owned, while the remaining vessels are under lease agreements. The company’s operating vessel fleet has a combined gross registered tonnage of 128,985 metric tons, a total passenger capacity of 7,450,162 passengers, and an aggregate cargo capacity of 338,305 twenty-foot equivalent units.
The group calls the ports of Manila, Batangas, Calapan, Puerto Princesa, Odiongan, Bacolod, Caticlan, Cebu, Dumaguete, Iloilo, Ormoc, Tagbilaran, Butuan, Cagayan de Oro, Davao, Dipolog, General Santos, Iligan, Ozamis, and Zamboanga.
