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LBC Express Holdings recorded a net loss of P190.95 million in the first six months of 2024 due to foreign exchange losses, among others
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This compares with a net income of P82.12 million in the same period last year
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LBC said net losses were offset by an improvement in gross profit, which rose slightly by 3% to P1.53 billion
LBC Express Holdings, Inc. recorded a net loss of P190.95 million in the first six months of 2024 from a net income of P82.12 million in the same period last year.
In a regulatory filing, the logistics and money remittance service provider attributed the loss to higher non-operating losses mainly from foreign exchange, valuation of convertible instrument, and interest by ₱288.78 million in aggregate.
LBC said net losses were offset by an improvement in gross profit, which rose slightly by 3% to P1.53 billion credited to “improved efficiencies and cost rationalization.”
Service revenues were down 3% to P7.13 billion due to a decline in the retail segment, said the company. Its domestic corporate segment, however, rose by 11%, while operating income went up by 14% to P331.1 million.
LBC chief financial officer Enrique Rey Jr. said: “It has been another challenging year operationally, and issues beyond our control such as the global supply chain and global logistics cost hikes have proven to be testing our resiliency.”
Rey said the company “focused on controlling what we can, and we are relentless in pursuing our targets.”
LBC noted it underwent an enterprise-wide restructuring in its operations to better manage costs. As such, service expenses were down 4% to P5.6 billion on lower delivery, remittance, manpower, rent, and depreciation costs.
To offset the shortfall yield from the reduction of branches, the company has 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 may be.
In the Philippines, LBC has more than 1,500 branches nationwide, with at least 200 hubs and warehouses in some 30 countries.
The company recently began offering cash-on-delivery services for businesses to combat bogus buyers, who fail to pay for their purchased products even after they have been delivered.
LBC also offers cash-on-pickup services for sellers and buyers, allowing payment upon package pickup at LBC branches to prevent scams.
The logistics company is also riding on the e-commerce boom through its mobile app, where clients can book deliveries and track real-time status of their deliveries.
READ: LBC Express posts P168.19M income in 2023 from 2022 loss
