LBC profit down 57%
COURIER LBC Express Holdings Inc. on Thursday said its net income last year fell 57 percent to P201.22 million, from the previous year’s P475.82 million, mainly due to lower revenues and pandemic-related expenses.
Service revenues fell 7 percent to P14.12 billion for the year, from P15.21 billion the previous year, due to the decline in demand during the worldwide lockdowns in the second quarter. The group’s branches remained open and delivery services were operational, but with extended lead times, due to safety, security and varied travel restrictions.
Revenues recovered in the third and fourth quarters of 2020, with consumer demand increasing and the subsequent normalization of operations, the company said.
Cost of services were reduced by 5 percent to P10.65 billion in 2020, from P11.26 billion in 2019, due to the lower volumes of acceptance in the second quarter. Cost of delivery and remittance likewise fell by 13 percent driven by volume decline and more cost-efficient methods of transport. Transportation and travel costs were also affected by various quarantine restrictions in the year, registering a 21-percent decrease.
These cost reductions, however, were offset by the cost of the movement in depreciation and amortization which rose by 5 percent due to the recognized amortization of right-of-use assets associated with new warehouses and renewal of branch lease contracts previously treated as operating lease. The company also raised salaries and benefits of employees in new warehouses and branches by 2 percent.
“All our employees and customers were reassured that the group was exercising all efforts to ensure public health and safety, and the group continues to be united with the nation during these trying times,” the company said.
“As the group has embarked on a recover y plan, its main objectives are to rebalance and reposition its services toward new consumer needs and behaviors, and rapidly innovate its services and capabilities to leverage on the accelerated shift of consumers to e-commerce.”