2GO Group, Inc. reported a bigger quarterly loss on Wednesday, citing a slowdown in the economy due to the ongoing public health crisis.
The group’s attributable net loss reached P291.12 million in the first quarter of the year, compared with a net loss of P108.92 million in the same period in 2020.
The company saw its total revenues decrease 22.7% to P3.99 billion from P5.16 billion previously.
“Shipping revenue, which is comprised of sea freight and travel revenue, declined 51% year on year. The decline was driven by reduced economic activity brought about by the COVID-19 (coronavirus disease 2019) pandemic, especially for travel, and planned maintenance to certain of 2GO’s ROPAX vessels, which resulted in 24% fewer roundtrips year on year,” the company said in its first-quarter report.
“Revenue from Logistics and other services increased 15% year on year due to growth from 2GO’s specialized reefer and isotank containers, international courier, and project logistics. Distribution revenue declined 22% year on year due to weaker consumer spending and changes to product mix,” it added.
2GO Group’s costs of services and goods sold fell 20.7% to P3.86 billion from P4.87 billion.
Shipping accounted for 22% of total revenues in the first quarter of the year, while non-shipping accounted for 78%.
Shipping accounted for 34% of the total in the same period last year, while non-shipping accounted for 66%.
“All other costs and expenses were generally maintained or reduced due to improvements in efficiencies and continued focus on controlling costs,” the company said.
The group intends to expand and enhance its service offerings to its customers and stakeholders this year.
“2GO 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,” it said.
“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” it added.
2GO Group shares closed 1.34% lower at P8.09 apiece on Wednesday. — Arjay L. Balinbin
