LBC earnings grow 10%
LBC EXPRESS Holdings, Inc.’s net income for the first quarter went up by 10% year on year on the back of the robust expansion of its air freight and courier services.
The logistics company’s quarterly report filed with the Philippine Stock Exchange showed its net income for three-month period reached P227.926 million, higher by 10.35% from the P206.531 million it earned in the comparable year-ago period.
LBC saw its income before tax rise to P328.03 billion from P296.65 billion amid an improvement in revenue and cost of services.
The company also benefitted from favorable freight rates of major carriers, increased utilization of flights and efficient use of sea carriers.
LBC said its service revenues in the January to March period rose 19% to P2.46 billion from P2.07 billion a year ago, primarily due to an increase in revenues from the logistics segment as both retail and corporate sales grew by 20% and 32%, respectively.
Revenues from its logistics business jumped 24.6% to P2.18 billion in the first quarter from the P1.75 billion seen in the preceding year’s comparable period, as the company added 40 new branches and expansion was boosted by growth in volume of air cargo, sea cargo and courier services rendered.
LBC said revenues from corporate clients increased 32.8% to P795 million in the quarter ended March 31 from the P598 million seen in the first three months of 2016.
During the first quarter, the logistics firm said cost of services was also up 17.7% to P1.61 million relative to the growth of volume in logistics services as operating expenses increased by 24% to P522 million from P421 million.
LBC’s logistics business includes retail or courier, air cargo forwarding and balikbayan box services, while its corporate sales include courier and freight forwarding and other specialized corporate logistics services. It also has a money transfer business.
LBC shares closed at P16.98 each on Wednesday, down 5.35% from its previous finish of P17.94 apiece. -- I.C.C. Delavin