2GO – Connecting the Nation
As consumer demand rose over the past year, 2GO ensured secure, on-time delivery of goods across the nation whether they were in 40-foot containers or small parcels.
Our shipping arm, 2GO Sea Solutions, moved more than 200,000 Twelve Foot Equivalent Unit (TEUs) of cargo in 2022, reaching as far as Davao within 3 days. Scanasia filled the shelves of more than 4,000 stores with over 1 million cases of products.
Its special container unit transported almost 17,000 TEUs of refrigerated and frozen products as well as almost 85,000 liters of special liquids that required special handling. 2GO fulfilled 60,000 e-commerce orders on average per day through its express business during the year, peaking at 110,000 during the holiday season.
2GO Travel continues to provide travelers a relaxed, safe and affordable way to experience the Philippines. The resurgence of tourism saw us welcoming travelers with upgraded vessel amenities and an enhanced onboarding experience. In 2022, 2GO Travel carried more than 700,000 passengers, a two-fold increase, to 15 local destinations.
The strong rebound in Philippine economic activity, combined with 2GO’s campaign to improve its operations, resulted in a financial turnaround for the business in 2022. The company registered earnings of PHP312 million on the back of robust revenues that increased 25% to PHP19.3 billion.
2GO continues its commitment to help the country reach its development goals by shaping and modernizing Philippine logistics through capital investments. 2GO Sea Solutions aims to expand its vessel fleet and port equipment to improve cargo volume throughput. Ongoing IT upgrades already seamlessly synchronize our various business units. We also continue to enhance the 2GO customer experience by loading more services onto our newly launched 2GO App.
Philippine Geothermal – More Power to the Filipino
The global shift to green energy has highlighted the importance of geothermal resources as a significant energy source in the Philippines.
The Philippines has the world’s third-largest geothermal capacity after Indonesia and the United States. As baseload energy supplied to the national grid, our geothermal power is always on 24/7, a reliable source of electricity.
In 1971, PGPC transformed a 2.5 kilowatt experiment into the first commercial geothermal power project in the Philippines— and in Southeast Asia. As the country’s pioneer geothermal power producer, we remain strongly committed to deliver clean, reliable and renewable geothermal energy in service of the national need for power.
Today, the Tiwi and Mak-Ban steam fields generate enough geothermal steam to produce approximately 300 megawatts of electricity. Drilling of wells for the past two to three years also provided additional equivalent capacity for PGPC. This helps increase the renewable energy mix in the Philippines at prices aligned with the Wholesale Electricity Spot Market, increasing supply and less dependency on higher cost energy.
Commitment to National and Global Goals
In 2022, PGPC was fully brought into the SM Group, reflecting SM’s deep understanding of our environmental challenges, as well as our deepening commitment to national and global goals.
We are aware that the sustainable development and use of renewable energy will improve many aspects of Filipino life, including energy security, environmental sustainability, the economy, mechanical manufacturing, construction, and transportation. Renewable energy will also help create new jobs. More Power to the Filipino We are an energetic advocate of education. PGPC offers college scholarships to outstanding but financially challenged students in communities in Albay and Laguna-Batangas provinces. We continue to reach out to our host communities for post-disaster school building repairs and builds. Recently, we reached out to Northern Samar for post-Yolanda actions by partnering in school building programs needed in the area.
Towards Climate Change Action
We take an active part in climate change action, enhancing the town of Tiwi’s disaster preparedness and adaptation capabilities by training local emergency teams and planting over 1,000 trees which will serve as natural barriers for strong typhoons and surges.
We also help develop Tiwi’s coastal ecotourism potential by strengthening coastal protection and creating more jobs and opportunities for local communities and businesses.
For the Mount Makiling Forest Reserve, we help protect and conserve the mountain by implementing an entire cycle of tree planting and adopting a community-based approach to natural resource management.
About 78% of our employment contracts are sourced from local communities outside of the National Capital Region. We nurture homegrown talents and enrich their careers, giving them paths to leadership.
Goldilocks – Celebrating Filipino Moments
Every Filipino celebration is centered on food: enjoyed in the spirit of both every day moments and milestones celebrations shared among loved ones. Goldilocks is every Filipino’s partner in making every occasion a celebration.
As we continue to nurture and sustain Filipino
celebrations, we always find ways to innovate our food and our services, including the ways we bring Goldilocks closer to every customer.
Three new cake launches were introduced last year—limited-edition cakes on special occasions: Salted Caramel Popcorn for Father’s Day and Candy Pop Cake for Children’s Month, and the Coffee Caramel Cake, which is now a regular in our chillers. Infusing creativity and innovation in our flavor offerings is our approach in meeting our customer’s evolving taste preference.
We also strengthened our presence in non-mall locations in provincial areas including Pangasinan, Iloilo, South Cotabato, and Rizal.
Our VisMin stores grew by 7%, while stores in outskirt provinces in Luzon grew by 6%. On average, Goldilocks opened at least 8 stores per month starting in the second quarter of 2022. In total, we have over 900 stores by the end of the year nationwide. This supports our ambition of making Goldilocks the most accessible bakeshop brand for every kind of Filipino celebration.
Our innovations went well beyond our food and our service, as we also aspire to improve our footprints in the communities where we operate in.
Our shift to Mondomix tanks last year reduced our water consumption, allowing the water to be reused for other purposes, saving our production plants 2,500 liters per day. We also began our shift to solar powered lights, helping reduce electricity consumption by at least 16kW for every 12 hours of operation.
As we reach more and more Filipinos and help them celebrate their everyday moments, we also want to make sure that we’re also doing our share in looking after our shared future.
Airspeed – Full Speed Growth
Many local enterprises greatly depend on logistics solutions to reach their customers. At Airspeed, we understand the challenges of end-to-end logistics and are committed to bridging every gap in the journey.
In 2022, we continued to grow our network of pickup and drop-off locations nationwide. Apart from our kiosks in SM Supermalls and standalone branches, we grew our networks through partnerships with M Lhuillier and other provincial service agents.
We launched Speedgifts, UnboxMe, and Pinaspeed,digital platforms that allowed our customers to order and send items safely to their loved ones, and gave enterprises access to new markets.
We also enhanced our e-fulfillment services, a customized solution for e-commerce companies. These services help ensure that items ordered online are stored safely, reach the buyer on a guaranteed timetable, and in cases of returns, are smoothly sent back to the seller for item replacement.
Looking ahead, we will be launching PopBox, a service that gives our customers a contactless delivery option. This does not only enhance our customer experience, but also reduces our overall carbon footprint, ensuring a sustainable way forward.
