Net income of Logistics service provider LBC Express Holdings Inc. declined 60 percent in 2020 to P200 million from P494.5 a year ago, driven by the shortfall on revenues and higher operating expenses mostly due to the pandemic.
LBC said in disclosure to the stock exchange over the weekend revenues last year seven percent to P14.12 billion from P15.21 billion in 2019 on decreased demand following the worldwide lockdowns starting in the second quarter of the year.
“The group’s branches remained open and delivery service operational, however, with extended lead times, due to safety, security and varied travel restrictions,” LBC Express said.
The group recouped revenues in the second half with the easing of the quarantine measures and a pick-up in consumer demand.
While cost of services declined by five percent to P10.65 billion in 2020, it was offset by an increase in cost due to higher depreciation and amortization, as well as capital expenditures related to new branches and higher salaries and benefits of employees.