LBC Express Holdings, Inc. (LBC) has reported a net income of P475.82 million in 2019, 65% lower than the P1.349 billion net income in 2018.
In a regulatory disclosure, LBC said the decline was due to loss in derivative attributable to the convertible instrument amounting to P642.51 million; lower foreign exchange gain; first time adoption of a new financial reporting standard that resulted in higher depreciation and interest expense, partially offset by the decline in rentals, among others.
Service revenues, on the other hand, grew 23% to P15.227 billion in 2019 from P12.342 billion in 2018.
LBC said the growth in revenues was due to increase in revenues for both the logistics and remittance segments by 25% and 3%, respectively.
The logistics business accounts for 93% of the group’s revenues as of December 2019 and the remittance segment for the rest.
“There is also a continuous growth in the domestic business mainly from the opening of 70 retail branches, introduction of new products in mid-2018 and domestic retail price increase effective October 2018,” LBC said.
Net contributed revenue of businesses acquired in 2019 was P1.781 billion.
Cost of services in 2019 was higher by 31% to P11.184 billion from P8.564 billion relative to the growth in volume for logistics and money transfer services, thus, a 23% surge in cost of delivery and remittance.
As of December 2019, LBC has offered logistics services at 1,466 owned branches in the Philippines, and 75-owned and 1,021 partner-agent branches in 29 countries and territories.
