2GO Group Inc. said Monday it posted a net loss of P310 million in 2017, a reversal from a net profit of P344 million in 2016.
2GO’s revenues amounted to P21.6 billion in 2017, up 13 percent from 2016, driven by the strong performance of the group’s non-shipping business that expanded 30 percent.
The company’s non-shipping continued to increase as a proportion of its business and accounted for 61 percent of the total revenues in 2017, with shipping accounting for 39 percent.
“2017 was a year of continued good underlying performance for 2GO, with significant actions taken to strengthen the long term strategy and governance of the company,” 2GO president and chief executive Frederic Dybuncio said.
“Our focus on customer service and experience remained high and we continued to enhance our non-shipping business activities in particular, where we see significant long term opportunities for growth,” he added.
Management’s focus in 2017 centered on strengthening corporate governance and ensuring the proper internal controls and systems were in place and effective. The Group continues its corporate governance initiatives and aims to expand and further enhance its service offerings to its customers.
To simplify the corporate structure, the board also approved a plan to consolidate Negros Navigation Company Inc. and 2GO resources into one entity in line with efforts to streamline operations, reduce costs and increase shareholder value.
Earlier, the Philippine Competition Commission voided the purchase by Dennis Uy-led Udenna Corp. of KGL Investment B.V., which partly owns logistics and transport firm 2GO for failure to notify the anti-trust body of the deal.
The PCC said both parties were also fined P19.6 million, equivalent to 1 percent of the value of the transaction, for the violation.
The anti-trust body said the transaction worth $120 million met the P1-billion threshold for review and that the parties should have notified the PCC of the acquisition.
