LOGISTICS company 2GO, Inc. trimmed its losses by more than half during the third quarter, as robust growth in its non-shipping business offset slower revenues from shipping.
In a regulatory filing, 2GO said its net loss attributable to equity holders of the parent stood at P46.3 million for the July to September period, lower than a year ago’s P105.86 million as restated.
Third-quarter revenues increased by 19% to P5.61 billion from a year ago’s P4.71 billion, fueled by growth from its non-shipping business. 2GO revenues from sale of goods surged 112% to P1.71 billion.
For its shipping business, 2GO recorded a 6% rise in revenues from passage to P765.3 million, while revenues from freight slipped 15% to P1.06 billion.
For the nine-month period, the company’s attributable profit plunged 84% to P71.29 million, from the P452.26 million last year.
2GO attributed the lower profit to recognition of non-recurring restatement adjustments for provision for bad debts and inventory that reached P207.2 million, as well as higher fuel prices.
Excluding the non-recurring adjustments, 2GO said its nine-month income would have dropped by 45% to P282.94 million from P511.92 million a year ago.
Revenues for the January to September period jumped 15% to P16.7 billion, fueled by a 25% growth in its non-shipping business thanks to an upgrade in services and focus on key domestic and international accounts. Non-shipping business now accounts for 61% of 2GO’s total turnover.
“The growth in revenues was led by 2GO’s distribution business, which increased by 67% as a result of gaining two new major principals during the second quarter. Similarly, the e-commerce business posted a 66% jump in revenues,” the company said.
The new management of 2GO, led by businessman Dennis A. Uy’s Udenna Corp. and Henry Sy, Sr.’s SM group hired SyCip Gorres Velayo & Co. to conduct a special audit after they took over the logistics company in April.
In July, the SEC was prompted to conduct an investigation on 2GO after the audit revealed substantially lower financial results for full-year 2015 and 2016, as well as for the first quarter of 2017. — PPCM