2GO GROUP, Inc. narrowed its net loss to P310 million in 2017 from the P344 million posted in 2016, as revenues jumped 13% due to the growth of its logistics and distribution business.
In a disclosure to the stock exchange on Monday, 2GO Group said its recurring net income, which excluded one-time charges, stood at P314 million.
The listed company, which has yet to file its audited annual financial report, said its revenues rose 13% to P21.6 billion in 2017.
“Revenue growth was driven by continued strong performance in the Group’s Non-shipping business (Logistics and Distribution), which grew 30% in 2017, due to increased service offerings to existing strategic customers (e.g., end-to-end warehousing, inventory management, cross-docking, delivery, merchandising), the addition of new customers, and an increased overall focus on customer service,” 2GO Group said.
The share of non-shipping revenues accounted for 61% of 2GO’s total revenues, while shipping accounted for 39%.
Frederic C. Dybuncio, president and CEO of 2GO Group, noted 2017 was a “year of continued good underlying performance” for the company.
“Our focus on customer service and experience remained high and we continued to enhance our non-shipping business activities in particular, where we see significant long-term opportunities for growth,” Mr. Dybuncio said in a statement.
At the same time, the 2GO Group board approved the plan to merge the company with its parent Negros Navigation Company, Inc. (Nenaco).
“This is in line with its efforts to streamline operations, reduce costs and increase shareholder value,” 2GO said in a statement.
Nenaco is the parent firm of the logistics firm. 2GO is currently being managed by the group of businessman Dennis A. Uy through Chelsea Logistics Holdings Corp., along with SM Investments Corp. (SMIC). SMIC holds an interest in 2GO after it purchased a 34.5% stake in Nenaco last April.
