2GO GROUP, Inc. posted a net loss of P892 million for 2019, a 39% improvement from its net loss of P1.47 billion for the previous year as it completed “a series of restructuring activities.”
“During 2019, 2GO completed a series of restructuring activities as part of the management’s plan to focus on improving core services and profitability,” the listed shipping and logistics provider told the stock exchange on Wednesday.
2GO reported a 9% increase in revenue for 2019 to P21.41 billion from P19.67 billion. But the cost of services and goods sold grew 7% to P19.67 billion from P18.44 billion.
The company attributed its revenue growth to the continued demand for services and goods.
“Revenue from the non-shipping business (logistics and distribution) increased year-on-year by 15% in 2019 and decreased by 2% in 2018,” it said, as it also noted 26% growth in its revenue from distribution business and 5% growth in the logistics business.
2GO said the non-shipping segment accounted for 67% of its 2019 revenues. The shipping business, whose revenue decreased by 2% last year, “discontinued the operations of its interisland freighter vessels and short-haul fast ferry passenger vessels as part of the management’s plan to focus on improving core ROPAX (roll-on/roll-off passenger) services and profitability.”
The 7% increase in costs of services and goods sold was driven by inventory goods sold by the distribution business, which increased by 23%, and bunker fuel oil consumed by the shipping business. The company said fuel costs increased by 14% last year due to an increased number of roundtrips by ROPAX vessels.
Chelsea Logistics and Infrastructure Holdings Corp. had acquired 100% of the The SuperCat Fast Ferry Corp. (SFFC) from 2GO in October last year.
The company said that for 2020, it will continue to focus on improving core services and profitability.
It added that it “aims to gradually build expertise for new services and industry verticals to better respond to market demand.”
“The group plans to achieve this through streamlined operations and collaboration within its business units, investments in technology, and synergies and best practices from its shareholders.” — Arjay L. Balinbin