LBC Express Holdings, Inc. (LEHI) earned P1.242 billion in total comprehensive income in the first nine months of 2018, 62.6% higher than the P764.105 million earned in the same period last year.
Service revenues increased 23% to P9.114 billion for the period January to September 2018 from P7.398 billion in the same period in 2017, primarily due to the increase in revenues from its logistics segment. LEHI, in a regulatory disclosure, said the improvement of its logistics business was due to growth in both retail and corporate sales by 26% and 30%, respectively.
Revenue from the logistics segment grew 27% to P8.4 billion from P6.597 billion previously, mostly due to the growth in volume of services by 72%. The increase in volume of services was mainly attributable to the horizontal growth of the company, evidenced by the net addition of 58 branches in the Philippines, continuous growth of local small, medium, and large enterprise clients, and introduction of its new product, the cash-on-delivery/cash-on-pickup.
In addition, newly acquired entities contributed logistics revenues amounting to P494 million, which constitutes 6% share in the total logistics revenue.
Cost of services, however, went up 24% to P6.059 billion from P4.889 billion as the growth in volume of logistics services resulted in an increase in cost of delivery and remittance by 34%. Rentals and utilities and supplies also spiked by 18% and 29%, respectively, with the company’s continuous expansion of its branches and warehouses.
Operating expenses rose 12% to P1.784 billion from P1.596 billion as a result of increases in salaries and wages, advertising and promotions, dues and subscriptions, and provision for impairment loss.
LBC is steadily expanding both its domestic and global reach. Overseas, it operates in more than 20 countries with a network of over 1,200 branches and a pool of 5,300 partner agents.
In the Philippines, it operates three main hubs for sea cargo, located in Manila, Clark and Cagayan de Oro. It runs more than 70 delivery hubs, managing a team of 1,410 delivery associations and over 6,000 employees across the country.
LBC has also heavily invested in a three-year digital transformation program to further automate its processes and respond to changes in the logistics industry.
