2GO trims Q1 losses

MANILA, Philippines — 2GO Group Inc. trimmed its losses in the first quarter behind lower expenses due to improvements in efficiencies and costs control.

2GO, in a stock exchange filing, reported a net loss of P111 million in the January to March period, an improvement from the P368 million net loss posted in the same period last year.

Revenue fell six percent year-on-year to P5.16 billion, which was attributed to the reduced economic activity brought about by the COVID-19 pandemic.

2GO said shipping revenue was at the same level as last year, while freight revenue increased.

However, this was weighed down by reduced travel revenue, especially during the last two weeks of March.

2GO said non-shipping revenue which came from logistics and distribution decreased by  nine percent year-on-year due to reduced transport and delivery volumes for several of the group’s logistics services.

The group said it experienced a slowdown in e-commerce inbound transactions from other countries and their related local deliveries as a result of decreased output from China, ASEAN and the rest of the world.

During the quarter, total cost and expenses declined despite rising transport costs for the logistics business and increased sales of inventory from the distribution business.

“Total cost and expenses were lower in the first quarter of 2020 compared to 2019, despite rising transport costs for the Logistics business and increased sales of inventory from the distribution business,” 2GO said.

2GO said the reduction in sales due to the enforcement of the enhanced community quarantine has not been very significant yet during the first quarter.

“Given the restricted mobility in and out of the country and the curtailed economic activities affecting demand not only in the Philippines but in other countries, the group expects a decline in sales/revenue volumes during the period and the subsequent months beyond the lifting of the aforesaid MECQ,” it said.