Despite higher revenue, Philippine logistics conglomerate 2GO Group Inc. reported a net loss of P310 million in 2017 due to one-off charges, swinging from a net income of P344 million in 2016.
Excluding one-off charges, recurring net income remained positive at P314 million. Revenue, meanwhile, reached P21.6 billion in 2017, 13% higher than in 2016, the group said in a statement.
2GO group president and chief executive officer Frederic Dybuncio said 2017 was “a year of continued good underlying performance for 2GO, with significant actions taken to strengthen the long-term strategy and governance of the company.”
“Our focus on customer service and experience remained high and we continued to enhance our non-shipping business activities in particular, where we see significant long-term opportunities for growth,” Dybuncio added.
Revenue growth was driven by the continued strong performance of the group’s non-shipping business (logistics and distribution), which grew 30% in 2017. This was due to increased service offerings to existing strategic customers (e.g. end-to-end warehousing, inventory management, cross-docking, delivery, merchandising), the addition of new customers, and an increased overall focus on customer service.
Non-shipping continued to increase as a proportion of 2GO’s business and accounted for 61% of total revenues in 2017, with shipping accounting for the other 39%.
During 2017, 2GO’s management focused on strengthening corporate governance and ensuring that proper internal controls and systems were effectively in place. The group said it will continue its corporate governance initiatives and aims to expand and enhance its service offerings.
To simplify the corporate structure, the 2GO Board recently approved a plan to consolidate Negros Navigation Company, Inc. and 2GO resources into one entity, in line with efforts to streamline operations, reduce costs, and increase shareholder value.
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