LBC swings to loss in H1

MANILA, Philippines — Logistics company LBC Express Holdings Inc. swung to a net loss in the first half as revenues took a downturn due to restrictions caused by the COVID-19 pandemic.

LBC reported a net loss of P499.15 million, a reversal of the P58.32 million income it posted in the same period last year. Service revenues fell 27 percent to P5.64 billion.

The turnaround was attributed to the significant shortfall on revenue due to the impact of COVID-19 pandemic to retail and corporate customers.

“The group had selected branches opened and delivery remained operational, but the lead times are extended due to safety, security and travel restrictions,” it said.

Operating expenses increased by two percent year-on-year to P1.36 billion, mostly coming from advertising expenses, provision for expected credit losses, and donations.

LBC said the cost of services decreased by 15 percent to P4.75 billion relative to lower volume of acceptance in the second quarter as a result of the pandemic.

Due to cancellation of airline flights, the company opted to use roll-on roll-off services to transport cargoes from NCR to Visayas and Mindanao and vice versa.

LBC said rental discounts were also granted to the group resulting in lower rent expense, while the temporary closure of selected branches reduced consumption of utilities and supplies.