LBC Express says Q1 profit surged 147% to P563.8-million
LBC Express Holdings Inc. said net income in the first three months of 2018 surged 147 percent to P563.8 million from P227.9 million year-on-year on the double-digit growth in both retail and corporate logistics.
LBC said in a disclosure to the stock exchange first-quarter service revenues rose 12 percent to P2.75 billion with revenues from logistics segment hitting P2.52 billion, up 12 percent on year.
LBC said the logistics volume grew 34 percent as the company pursues expansions and the rollout of retail branches across the country.
The growth of volumes from small-and-medium enterprise clients and opening of branches in the Middle East also contributed to higher sales volume.
The cost of services increased 13 percent to P1.81 billion relative to the volume growth in logistics services provided to customers and the 17-percent rise in the actual costs of delivery and remittance services.
LBC Express Holdings Inc. in March approved the purchase of shares of some international affiliates. The move is expected to benefit the company through contributions from global revenue streams.
LBC also in March invested in and acquired a 30-percent equity interest in Orient Freight International Inc. to diversify the company’s businesses and realize returns on investments.
“This is a strategic investment for LBC as we continue to move toward expanding our business and maintaining our number one position in the industry,” LBC chief executive Mike Camahort said.
“Having a stake in OFII will yield LBC better economies of scale, while also achieving improved cost efficiency in certain sub-sectors of our business where we see a great deal of growth prospects. In particular, OFII is well-entrenched in brokerage, cold chain, automotive logistics, warehousing and distribution centers, and project logistics—we look forward to working together and growing these sectors for both companies,” he added.
OFII, established 44 years ago, is now the leading freight forwarder and cargo handler in the Philippines and in Southeast Asia.