LBC Express Holdings, Inc. recorded a first-quarter attributable net income of P207 million, a jump of more than four times the P48.87 million posted in the same period last year.
“This is mainly attributable to [a] decrease in cost and expenses as part of management’s cost rationalization. Contributory also are the non-operating gains from foreign exchange and derivative valuation,” the company said in its quarterly report filed on Tuesday.
In the first three months of the year, it recognized a 4.5% decrease in service revenues to P3.78 billion from P3.96 billion, which the company attributed to lower revenues in the logistics segment. Its logistics business accounted for P3.65 billion of the quarter’s top line, down 4.1% from the P3.81 billion in the previous year.
Money transfer services recorded P127.43 million in revenues during the quarter, down 13.6% from P147.43 million a year earlier. Costs of services were lower in the first quarter at P2.97 billion, a 2.6% decrease from P3.05 billion previously.
“Cost of services is down… pertaining to improvement in cost of delivery and remittance by 4%. Reduction in air freight costs and manpower were aligned to current sales volume,” the company said.
“However, these reductions were offset by the surge in cost of freight-sea as general price increase was implemented by shipping lines, both in domestic and overseas setting, several times mid-2022,” it added.
The company also managed to cut operating expenses by 9% to P566.79 million during the quarter from P625.27 million a year ago because of lower spending for coronavirus disease-related expenses.
LBC Express is a public holding company with two primary business segments: logistics and money transfer services. The logistics business caters to both retail and corporate customers. The money transfer services segment is made up of domestic and international remittance services.
On Tuesday, shares in the company closed 38 centavos or 2.33% lower to P15.90 each. — Justine Irish D. Tabile