MANILA, Philippines — LBC Express Holdings Inc., the listed logistics company, continued to operate both in the Philippines and overseas locations despite the pandemic, and has been on the recovery path.
In a regulatory filing yesterday, LBC said gross profit increased by 53 percent to P1.4 billion in the third quarter from the P914 million in the same period last year, mainly from simultaneous increase in revenue by six percent and reduction of costs by nine percent.
However, for the nine-month period, gross profit decreased by 25 percent to P2.28 billion from P3.05 billion a year ago primarily due to a 16 percent decline in revenues as a result of lower volumes caused by the lockdown.
Revenues stood at P3.99 billion in the third quarter, up six percent, largely driven by a 33 percent increase in retail logistics sales.
However, for the nine-month period, revenues totaled P9.63 billion, a 16 percent decline from the previous year’s P11.49 billion largely attributable to volume decrease in the March through May period corresponding with the COVID-19 lockdown measures in the country.
The group’s branch operations were diminished during the various quarantine level scenarios, and delivery turnaround times were extended in consideration of safety and security protocols and travel restrictions.
Moving forward, the group has embarked on a recovery plan, with the main objective of rebalancing and repositioning its services toward new consumer needs and behaviors, and rapidly innovate its services and capabilities to leverage on the accelerated shift of consumers to e-commerce.
“With this, LBC has been expediting its digital services both for retail and corporate customers, which is already implemented in its improved website, and soon, LBC will launch its enhanced online application,” the company said.
However, there are challenges that remain in the forwarding segment throughout the country given various government regulations towards safety and security brought about by COVID-19, specifically in air traffic operations.