2GO Group, Inc. cut its net loss attributable to equity holders by 70.5% in the first quarter after it managed to reduce its expenses.
In a regulatory filing, the listed shipping and logistics provider posted an attributable net loss of P108.92 million as of March, from the net loss of P369.03 million in the same period last year.
The company attributed its net loss in the three-month period to reduced travel revenues, especially during the last two weeks of March when the government placed the entire island of Luzon under an enhanced community quarantine to contain the coronavirus disease.
As for the decline in its attributable net loss, 2GO Group said: “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.”
It said fuel prices also decreased by 32% where the listed company had a favorable price variance of P191 million for the quarter.
“All other costs and expenses were generally maintained or reduced due to improvements in efficiencies and focus on controlling cost,” 2GO Group said.
2GO Group reported a decline in revenues by 6% to P5.16 billion during the three-month period. Broken down, the company saw a slight improvement of 0.3% in its shipping business. Sales of goods also grew by 15%, but revenues from logistics and other services went down by 33%.
2GO has three core business units, namely, 2GO Freight, 2GO Travel, and 2GO Supply Chain.
For the first quarter, shipping accounted for 34% and non-shipping accounted for 66% of the group’s total revenue, compared to 32% and 68%, respectively, in the same period in the previous year.
The group said it expects a decline in sales or revenue volumes during the subsequent months beyond the lifting of the modified enhanced community quarantine.
It also said that it has already activated its business continuity plan and “has taken steps to manage the risk of disruption in the value chain both inbound and outbound, including the potential overall economic impact and the effects of the business disruptions in other business entities, some of which are integral to the value-chain of the group.”
Shares in 2GO Group went up 0.54% on Thursday to close at P9.25 apiece.