2GO cuts net loss, stays bullish on growth


2GO Group, Inc. trimmed its second-quarter net loss to P308.7 million from a loss of P621.6 million in the same period a year earlier, as the cost of services and goods sold fell.

Total revenues for the quarter decreased 2.6% to P3.8 billion from P3.9 billion in the previous year, 2GO’s second-quarter results showed.

By business segment, freight revenue for the quarter rose 49.4% to P849.7 million, while travel revenue declined 10.1% to P93.8 million.

Second-quarter revenue from logistics and other services grew 36.4% to P1.5 million, while revenue from the sale of goods fell 33.3% to P1.4 million.

The cost of services and goods sold decreased 7.5% to P3.7 billion, resulting in a gross profit of P123.1 million, compared to a loss of P86.1 million in the same period last year.

2GO’s second-quarter general administrative expenses increased 5.4% to P398 million, bringing the company’s operating loss to P274.9 million from a loss of P463.8 million in the previous year.

The company trimmed its attributable net loss for the first six months of the year to P599.8 million from a loss of P730.5 million in the same period a year earlier.

First-half revenues fell 14.3% to P7.8 billion from P9.1 billion in the previous year.

2GO attributed its net loss for the first half to “the continued slowdown in the economy brought about by the… pandemic.”

“For 2021, 2GO continues its corporate governance initiatives and aims to expand and further enhance its service offerings to its customers and stakeholders. 2GO plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders,” the company said.

“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” it added.

2GO shares closed 1.12% higher at P8.14 apiece on Tuesday. — Arjay L. Balinbin

Source: Business World