LBC net profit jumps 147% to R564 M in Q1

LBC Express Holdings, Inc. (LBC) reported a 147 percent surge in net income to R563.82 million in the first quarter of 2018, from the R227.93 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said service revenues increased by 12 percent to R2.75 billion in the first quarter of 2018 from R2.46 billion in the same period last year.

LBC said this is primarily due to escalated sales growth in both retail and corporate logistics by 14 percent and 18 percent, respectively.

Revenues from logistics segment improved by 16 percent to R2.52 billion for the quarter ended March 31, 2018 from R2.18 billion for the same period in 2017.

“This rise is mostly ascribed to a 34 percent volume growth, due largely to the horizontal expansion of LBC; and substantiated by the net addition of 72 retail branches in the Philippines, and continuous growth of volumes from Small and Medium Enterprise (SME) clients,” LBC said.

It added that, “LBC branches in the Middle East introduced local/domestic courier services (analogous to LBC services offered in the Philippines), which gained positive customer response, and augmented sales volumes.”

Gross profit, primarily volume-driven, grew by 10 percent to R932 million from R846 million for the same period last year.

However, in this first quarter of 2018, cost of services is higher by 13 percent to R1.82 billion from R1.61 million for the same period in 2017, relative to the volume growth in logistics services provided to customers, while correspondent to a 17 percent increase in the actual costs of delivery and remittance services.

Additionally, this same increase in volumes necessitated an augmentation of organic employee headcount, contributing an increase in salaries and benefits by 8 percent, and rentals and utilities, and supplies consequently augmenting by 15 percent and 10 percent, respectively. (JAL)