LBC Express Holdings, Inc. announced on Monday that its unit LBC Express, Inc. had entered into a P1.62-billion loan deal with UnionBank of the Philippines, Inc.

The transaction between LBC Express and UnionBank took place on May 31, the listed LBC Express Holdings said in a disclosure to the stock exchange.

“The proceeds of the loan shall be used to partially finance the construction of LBCE’s (LBC Express) new warehouse, importation and installation of a sorting machine, and land acquisition via loan take-out,” the company added.

LBC Express Holdings recently reported a 21.5% decline in its first-quarter attributable net income despite higher revenues, mainly due to higher expenses.

The company’s attributable net income stood at P139.73 million, down from P177.89 million the previous year.

This is despite a 14.7% increase in the company’s revenues to P4.36 billion from P3.80 billion in the first quarter of 2020.

Total expenses rose 11.17% to P3.88 billion from P3.49 billion previously.

It said depreciation and amortization increased by 26%, pertaining to amortization of right-of-use assets recognized during the period.

LBC Express Holdings shares closed 4.65% lower at P16 apiece on Tuesday. — Arjay L. Balinbin