By Denise A. Valdez
LBC Express Holdings, Inc. continues to consolidate its international affiliates, as it announced on Wednesday the acquisition of 92.5% of shares in Malaysia-based LBC Mabuhay.
In a disclosure to the stock exchange, the listed company said it bought 924,998 shares in LBC Mabuhay from Jamal Limited. LBC paid $461,782 for majority stake in the courier services company.
“The acquisition is expected to benefit the Company by contributing to the global revenue stream of the Company,” it said.
LBC earlier this year said it will consolidate its international affiliates, particularly those in United Kingdom, Italy, Spain, Germany, and Hong Kong, under the company.
In June, LBC acquired four remittance and cargo companies, which offer LBC services in Australia and Singapore. In March, LBC bought a 30% stake in Orient Freight International, Inc. for P218.88 million.
Meanwhile, LBC said its net income attributable to shareholders of the parent company nearly tripled to P619.314 million during the second quarter, from P212.25 million a year ago.
The service business generated P3.033 billion in revenues for the quarter ending June 30, up 24% “mostly from the growth in both retail and corporate logistics sales by 21% and 40%, respectively.”
LBC’s logistics business recorded a 22% rise in revenues to P2.673 billion, driven by a 33% growth in the volume it handled for the period.
“The increase in volume of services was mainly attributable to the horizontal growth of the Company, evidenced by the net addition of 60 branches in the Philippines. In addition, the branches in Middle East introduced their local courier services which gained a positive customer response and contributed to the increase in sales,” LBC said in a regulatory filing.
The growth in operating expenses was limited to 2.14% at P530 million, subdued by lower royalty and professional fees. But primary drivers of the increase were the 12% rise in salaries and wages and a P20-million additional spending for taxes and licenses.
LBC saw its six-month attributable net income rise 134.63% to P1.128 billion on the back of an 18% growth in gross profit, a 4% cut on operating expenses, a P439-million gain on derivative and an increase in foreign exchange gain.
Last month, the company said it plans to open 100 stores every year until 2020, having launched around 45 to 46 stores already during the January to June period.