2GO Group, Inc. incurred a net loss of P758 million in the first nine months of 2019, higher than the P707 million loss for the same period last year as shipping revenues declined and cost of services increased.
Revenues increased 8% to P17.336 billion from January to September 2019 from P16.539 billion in the same months last year, 2GO said in a regulatory disclosure.
The company said the increase was due to the growth of the non-shipping business (logistics and distribution), where revenue improved 10%, driven by growth in courier, e-commerce, cold chain, ISO tank, and distribution businesses.
Shipping revenues, on the other hand, decreased 3% primarily due to the increased competition in the freight segment, partially offset by higher travel revenues.
For the period, the non-shipping business increased its share to 62% from 59% last year, while the shipping business accounted for 38% from 41% previously.
Services cost up 6%
Cost of services and goods sold rose 6% to P16.580 billion from P15.669 billion a year ago, the increase attributed to rising fuel and commodity prices during the period, as well as the increased sales of inventory from the distribution business. Fuel prices increased by 4%, resulting in a negative price variance of P62 million in 2019, 2GO said.
General and administrative expenses declined 10% as 2GO continued to focus on controlling costs.
For 2019, 2GO said it will continue its corporate governance initiatives, and expand and further enhance its service offerings to its customers and stakeholders. To achieve these objectives, it will promote more streamlined operations and closer collaboration within its business units, invest in warehousing and logistics information technology solutions for customers, and initiate 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, and the rest are leased. The 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.