2GO GROUP, INC. swung to a P291-million loss in the first quarter, as expenses ballooned due to rising fuel and commodity prices.
In a regulatory filing, the listed shipping and logistics provider posted an attributable net loss of P290.74 million in the January to March period, from an attributable net income of P38.44 million in the same period last year.
2GO reported an 11% increase in revenues to P5.89 billion during the three-month period, but cost of services and goods grew by 20% to P5.66 billion.
“Costs of services and goods sold increased 20%, primarily driven by rising fuel and commodity prices and increased sales of inventory from our distribution business. Fuel prices increased 19% compared to the 1st quarter of 2018, which resulted in a negative price variance of P134 million,” the company said in a regulatory filing.
2GO attributed the group’s higher revenues to “the gross presentation of certain revenue streams in 2019 as required by the new revenue accounting standard (PFRS 15, Revenue from contracts with customers).”
On a comparative basis, 2GO Group’s revenues rose 4% to P5.886 billion this year from P5.65 billion a year ago.
The bulk or 64% of revenues came from non-shipping business. 2GO saw a 10% improvement in its non-shipping business, brought by the “growth in courier, e-commerce, coldchain and isotanks and distribution businesses.”
Shipping revenues, account for 26% of the total, fell 6% as competition in the freight segment intensified.
2GO has three core business units, namely, 2GO Freight, 2GO Travel, and 2GO Supply Chain.
For 2019, 2GO said it is looking to expand its service offerings.
“The Group plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders. Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” 2GO said in the regulatory filing.
Shares in 2GO rose 20 centavos or 1.71% to P11.90 each on Monday. — D.A.Valdez
