MANILA, Philippines — LBC Express Holdings Inc. booked a profit of more than P200 million in the nine months to September, as it pursued spending cuts to minimize the impact of its revenue decline.
LBC Express reported a net income of P215.23 million from January to September, a reversal from its net loss of P227.1 million a year ago.
The revenue of the courier service provider declined by seven percent to P10.88 billion from P11.67 billion but was offset by the eight percent decrease in expenses to P8.6 billion from P9.22 billion.
Its retail and remittance revenues both fell by eight percent. This was coupled by the corporate business staying almost on the same level as last year.
During the nine-month period, LBC Express saw a decline in delivery and remittance costs. It also brought down its depreciation and amortization thanks to efforts to rationalize warehouses.
It also managed to keep its freight costs steady as a result of its continued use of roll-on, roll-off services offering lower rates compared to air freight.
The company also reduced its non-core spending, particularly for advertising and campaigns, to generate the needed funds for the transfer of its processes to digital platforms.
As the year comes to a close, LBC Express believes that demand for courier services would go up, as Filipinos will send holiday shipments for their loved ones here and abroad.
This gives LBC Express confidence that it will close 2023 on a high note, especially as this year is marked as the start of post-pandemic recovery for the logistics industry.
Logistics was one of the most hurt sectors at the height of the COVID-19 pandemic, with governments placing border restrictions that limited the flow of trade.
LBC Express is owned and operated by LBC Development Corp. LBC Express controls several units across the globe, including subsidiaries in the US Mainland and Hawaii.
It offers its retail and corporate clients with logistics services that cover air, sea and ground transport. It also provides financial services, mainly cash transfer and bills collections, through the branches it manages here and overseas.