Capitalists And Money

2GO cuts net loss to P35 million as economy reopens 

LISTED transportation and logistics company 2GO Group, Inc. announced on Monday that it trimmed its net loss for the first quarter of the year to P35 million from a loss of P292 million previously.

The company attributed its improved financial performance to the reopening of the country’s economy.

Its revenues, both from shipping and non-shipping businesses, remained nearly P4 billion in the first three months of the year, the company’s first-quarter report showed.

However, the cost of services and goods sold went down by 9% to P3.66 billion from around P4 billion in the same period in 2021, resulting in a gross profit of P335.15 million from a loss of P4.89 million previously.

The company reported an operating income of P92.15 million versus an operating loss of P230.67 million reported in the first quarter of 2021.

“With the country’s economic reopening underway, shipping revenues rose 53%, as both sea freight and travel gained traction,” the company said in an e-mailed statement.

“Logistics and other services revenue grew 14%, boosted by the growth in cold chain reefers, e-commerce fulfillment and international courier services. In aggregate, 2GO Group delivered PHP3.9 billion in revenues for the first three months of 2022,” it added.

2GO Group President and Chief Executive Officer Frederic C. DyBuncio said the company mainly focused on profitable services and customers, while “driving efficiencies in its operations and stringently controlling costs.”

“We are encouraged by the country’s reopening as it opens opportunities for us to facilitate economic activity,” he added.

The company is modernizing its operations to improve customer experience and strengthen services.

“As the economy continues on its path towards recovery, 2GO looks forward to the return of travel and tourism. Our ships and port operations have been upgraded in preparation for this to provide passengers with an enhanced onboard and terminal experience. We are optimistic that our continued modernization efforts will further improve service standards and drive profitability,” Mr. DyBuncio said.

2GO Group shares closed 0.14% lower at P6.89 apiece on Monday. — Arjay L. Balinbin