-
LBC Express Holdings swings to a P121.72-million net loss for the first nine months of 2024, a reversal from the P205.76 million income recorded year-on-year
-
Service revenues slid 3% to P10.58 billion mainly due to the 6% decline in the retail business segment
-
Operating income, however, increased 7% to P490.40 million owing to an improvement in gross profit and lower operating expenses
LBC Express Holdings, Inc. swung to a P121.72-million net loss for the first nine months of 2024, a reversal from the P205.76 million income recorded in the same period last year.
From January to September 2024, LBC’s service revenues decreased by 3% to P10.58 billion from P10.88 billion year-on-year, mainly within the retail business segment which declined by 6%. This was, however, counteracted by the revenue growth of 10% in the corporate business segment, the logistics and money services company said in a statement.
Operating income, however, increased 7% to P490.40 million for the first nine months of 2024 from P457.89 million in the same period last year, mainly owing to an improvement in gross profit and a decrease in operating expenses.
Gross profit slightly grew to P2.3 billion from P2.27 billion last year as a result of improved efficiencies and cost rationalization.
Operating expenses declined to P1.79 billion in January-September 2024 from P1.82 billion in the same period last year, mainly driven by cutbacks in manpower cost, utilities and supplies, depreciation cost, software maintenance cost and other dues and subscriptions. These movements were offset by increases in professional fees, provision in credit losses, and taxes and licenses. The company embarked on an enterprise-wide restructuring of its operations and configurations, with the aim of streamlining its systems and better serving customers.
Cost of services decreased by 4% to P8.3 billion, largely due to improvement in cost of delivery and remittance by 5%, and likewise, facilities costs (rental, utilities, depreciation) by 8%. Furthermore, direct costs were reduced as the company’s management continues its cost rationalization programs, which include facilities consolidation, workforce rightsizing, and improvement of operational touchpoints.
Lower manpower, rent, and depreciation costs also contributed to this improvement, as part of LBC’s rationalization of its brick-and-mortar stores. To offset the shortfall yield from the reduction of branches, LBC appended its capacities for pick-ups of parcels and packages. This complimentary pick-up service has been made available online through the LBC website and mobile application, making it convenient for customers to avail of, anywhere they are.
LBC in a statement said it continues to adapt and adjust its capacities and services and remains optimistic, moving forward into its 75th year of operations in 2025.
LBC said it adapts to customer needs and “delivers superior service through continuous innovation by exploring and embracing new platforms and technologies, and enhancing capabilities, maintaining a commitment to.”
The company said it will continuously improve its services, drive operational efficiency, reduce internal costs, and open new revenue streams.
“We will remain determined to drive productivity and profitability, while investing in efficiency and our future growth. We are adjusting operations to address new capabilities,” LBC chief finance officer Enrique V. Rey, Jr. said.
