2GO narrows net loss

MANILA, Philippines — 2GO Group Inc., the country’s largest total end-to-end logistics solutions provider, narrowed its net loss to P46.3 million in the third quarter from P105.8 million the previous year.

In the first nine months, 2GO’s net earnings reached P71 million, down from P452 million a year ago. Total revenues increased 15 percent to P16.7 billion.

The company posted a healthy EBITDA (earnings before interest, taxes, depreciation and amortization) of P2.04 billion (earnings before interest, taxes, depreciation and amortization) despite higher fuel prices and competition in the market.

2GO’s new management led by businessman Dennis Uy aims to sustain the firm’s revenue growth and further improve customer service levels and profitability by streamlining operations, rationalizing costs and consolidating facilities.

Sycip Gorres Velayo & Co (SGV) was reappointed as 2Go’s new external auditor, replacing R.G. Manabat & Co., the Philippine partner of KPMG.

 SGV was the auditing firm which the company’s new management tapped to do a special audit of the company’s financial statements and which found discrepancies in the audit of KPMG.

 It was previously the auditor of 2GO but the Tagud-led management, the previous owner of the company,  did not renew the  contract with them and instead hired KPMG.

 The audit showed that 2GO incurred P264.7 million in losses in the first quarter.

This was in stark contrast to the P266.9 million profit reported in the financial statements previously filed.

Similarly in 2016, the company incurred a net loss of P48.2 million as against a net income of P290.93 million.

2GO, formerly owned by the Aboitiz Group, was previously Aboitiz Transport System Corp. before the entry of the Tagud family.

At present, the company controls  more than 92 percent of the country’s passenger freight and 35 percent of cargo.