LBC Express Holdings, Inc. recorded a net income of P187.7 1 million in the first quarter of 2020, a whopping 2,378% increase from the P7.57 million reported in the same period last year.
In a disclosure to the Philippine Stock Exchange, LBC attributed the improvement to a gain on derivative due to a convertible instrument amounting to P0.16 million, and provision of lower income taxes.
Service revenues grew 2% to P3.8 billion from P3.717 billion in the first quarter last year. LBC said this was on account of higher revenue from its logistics business, attributable to higher retail sales by 20%, but offset by 29% lower corporate sales from disposal of a subsidiary in July 2019.
Revenue contributed by newly-acquired businesses from mid-2019 amounted to P57.19 million.
The domestic business contributed to overall revenues with the opening of 89 additional retail branches from the second quarter of 2019 and the continuous growth of cash on delivery and cash on pickup product transactions.
Cost of services is higher by 3% to P2.733 billion in the first quarter of this year from P2.641 billion in the same quarter in 2019 relative to the growth of volume in logistics services and increase in domestic airline rates effective January 2020 which translated to higher airfreight costs.
Operating expenses were also 10% higher at P756.51 million from P686.86 million in the first quarter of 2019.
Meanwhile, LBC said the impact of the coronavirus disease pandemic “could have a material impact on the group’s 2020 financial results, and periods thereafter.” LBC said considering the evolving nature of the pandemic, it cannot yet determine its impact on its financial position, performance, and cashflows. The company said it continues to monitor and assess the situation, and adapt capacities to mitigate risks. LBC earlier activated its business continuity plans to continue providing needed services during the pandemic.
LBC has a growing network of over 6,400 branches, hubs and warehouses, partners, and agents in over 20 countries.
