EARNINGS of LBC Express Holdings, Inc. nearly doubled to P1.36 billion, thanks to the growth of its logistics business and a one-time gain.
The listed firm said in a regulatory filing its attributable net income soared 93.2% last year from P703.88 million in 2017, which it attributed to revenue growth resulting from bigger volumes throughout the year and the “recognition of gain from derivative, amounting to P454.20 million which compensates the loss incurred in 2017.”
Service revenues reached P12.51 billion in 2018, a 25% jump from P10.02 billion the previous year, driven by a robust performance of its logistics segment.
“In 2018, LBC Holdings expanded operations by acquiring one domestic and nine international entities engaged in money remittance and online and regular logistics services. Net contribution to revenue from these business combinations amounted to P889.79 million or 36% of the total increase,” the company said.
Its operations in the Philippines also contributed P123.67 million in total revenues with the opening of 76 new retail branches last year and introduced new products.
The courier recorded a 30% increase in cost of services to P8.56 billion, accounting, mostly for the cost of delivery and remittance as volume of its logistics business grew.
“Direct cost was also significantly affected by the increase in fuel rates, largely due to additional taxes imposed in compliance with the TRAIN Law…. This inclined carriers, mainly outsourced airlines and truckers, to enforce rate increases during the year,” it said.
Operating expenses of LBC also grew 25% to P2.58 billion last year as salaries and wages increased 27% to P134.97 million due to inflation, and its benefit tax rate increased from 32% to 35% due to the Tax Reform for Acceleration and Inclusion (TRAIN) Law. — Denise A. Valdez