LBC Express net loss widens to P144M

LBC Express Holdings, Inc. saw its attributable net loss for the third quarter of the year widen to P144.11 million from a loss of P64.22 million in the same period a year ago, mainly due to higher non-operating expenses.

The company’s service revenue for the period went up 1% to P3.94 billion from P3.90 billion previously.

There was a “growth in the overseas logistics and money transfer services by 12% and 14%, respectively,” LBC Express said in its third-quarter financial performance report.

Meanwhile, the company’s cost of services increased by 2% to P3.19 billion from P3.13 billion in the same period a year ago.

LBC Express attributed the increase to the higher cost of delivery and remittance by 1%.

“There are rate increases for domestic and international shipping lines and fuel rates,” the company also said.

Other charges rose to P289.69 million for the third quarter from P109.46 million previously.

This was mainly driven by “losses related to foreign exchange amounting to P89.55 million … compared to gains amounting to P22.50 million” in the same period last year, the company noted.

For the January-to-September period, the company incurred an attributable net loss of P227.10 million from a loss of P246.34 million in the same period last year.

Total service revenue for the period stood at P11.67 billion from P12.32 billion previously. Cost of services went down by 2% to P9.22 billion from P9.43 billion in 2021.

This was due to “lower cost of delivery and remittance by 7%,” the company said. “Reduction in truck rentals were aligned to current sales production.”

“However, these reductions were offset by the increasing fuel prices and surge in cost of freight-sea as general price increase was implemented by shipping lines, both domestic and overseas setting,” the company added.

LBC Express shares closed 4.81% higher at P17 apiece on Monday. — Arjay L. Balinbin