2Go Group, Inc. reported a 44.4% growth in net income for the first nine months of the year, owing largely to the positive performance of its non-shipping operations.
In a disclosure to the Philippine Stock Exchange, 2Go reported a net income of P914.969 million for the period reviewed, up from P633.761 million in the first nine months of 2014. Revenue likewise accelerated 16.6% to P12.116 billion from P10.387 billion previously.
The logistics and value-added services propelled the positive performance for the period, with 2GO’s shipping operations providing a stable platform and a sustainable competitive advantage. For the nine-month period, the non-shipping group outpaced the shipping group by growing 25% in revenues against the latter’s 8%.
Freight revenues increased 7% to P2.856 billion from P2.679 billion following higher volume arising from more round trips and optimized routing initiatives.
The passage business expanded its revenue by 10% to P2.722 billion from P2.47 billion with continued improvement of its service offerings.
“2Go Travel continues to ride high with the continuously improving domestic tourism industry that has a positive impact on the surge in volume of sea travellers,” it said.
Consistent with the group’s focus of expanding its non-shipping businesses, the revenue mix has further shifted to 54%:46% for non-shipping and shipping, from the 50%:50% non-shipping-to-shipping ratio in 2014.
2GO said it is now “the largest and most complete supply chain solutions provider in the Philippines.”
“It continues to address the needs of a growing Philippine economy that is driven by stronger consumption spending, particularly on food, beverages, and transportation,” the group said.
Operations include warehousing, inventory management; domestic and international express mail and courier services; sales distribution and merchandising; domestic freight services for full/less container load shipments; ISO tank, reefer and cold chain services; heavy lift and project logistics; regular liner passenger service; corporate/ leisure travel and package tours; and international freight forwarding and brokerage.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
