Integrated transport solutions provider 2Go Group, Inc. reported a 1% decline in net income for the first half of the year despite strong revenues from all of its businesses.
The group’s net income reached P847.575 million in the first six months of the year, slightly lower than the P854.437 million earned in the same period last year, 2Go disclosed to the Philippine Stock Exchange.
Revenue, on the other hand, rose 14% to P9.790 billion from P8.554 billion previously, largely due to the continued expansion of the non-shipping group that grew 23% in the period.
The group’s non-shipping business, which consists largely of logistics and supply chain solutions, improved its performance as a result of various service upgrade initiatives and focus on growing key domestic and international accounts.
With the robust growth of the non-shipping business, revenue mix of the group continues to tilt towards non-shipping, which now accounts for 55% of total turnover.
Its shipping arm, meanwhile, posted growth on higher volume and better load factor for both the northbound and southbound routes.
The group continues to tighten its hold on costs and expenses, which resulted in operating expenses growing by only 5% whilst terminal costs rose by 33%, largely due to an increase in freight volume. The tight rein on costs was aided by relatively low fuel prices during the period, 2Go noted.
It added, however, that amid strong performance in the first half, its core business was dampened a bit by a non-recurring loss when an old vessel was disposed of and replaced by a newer and more efficient vessel that was launched in March 2016.
Group president and chief executive officer Sulficio Tagud, Jr. earlier said 2Go will be spending almost P1.9 billion this year on capacity and fleet expansion as it anticipates the continued growth of its businesses.
Tagud said that 2Go is constantly increasing capacity as “potential for growth is still tremendous,” and that investing in more facilities will allow the group “to really move products faster.”
2GO is the country’s largest end-to-end logistics solutions provider with services including warehousing; inventory management; domestic and international express mail and courier services; sales distribution and merchandising; domestic freight services for full or less container load shipments; ISO tank, reefer and cold chain services; heavy lift and project logistics; regular liner passenger service; corporate and leisure travel and package tours; and international freight forwarding and brokerage.
