Philippine logistics company LBC Express reports 58% drop in net profit in 2020

LBC Express, the largest logistics company in the Philippines, released a report saying that due to the impact of the epidemic, its net profit in 2020 decreased from 447.52 million in 2019 to 5.8122 billion, a decrease of 58%.

In a disclosure to the Philippine Stock Exchange, LBC Express said service revenue fell 7% from P15.21 billion in 2019 to P14.12 billion in 2020 as demand for various products declined due to lockdowns around the world in the second quarter of 2020 .

The company noted that the lockdown during the pandemic had affected both retail and corporate customers across its local and overseas businesses.

In addition, wages and benefits increased by 2% compared to the manpower of new warehouses and branches, while the increase in business expenses mainly came from the purchase of epidemic prevention supplies , including medical and sanitary supplies, testing kits, medical professionals' fees , shuttle bus rentals and donated masks .

The company 's branches remained open last year and logistics delivery services continued to operate , but delivery cycles were extended due to various lockdown restrictions in various regions . With increased consumer demand, LBC Express 's revenues recovered and delivery cycles returned to normal in the third and fourth quarters .

LBC Express said it has now embarked on a recovery plan with the aim of adjusting and repositioning its services , analyzing new consumer needs and behaviors , and rapidly innovating its services and capabilities to respond to shifting consumer preferences and needs during the pandemic.

LBC was officially established in 1945. It was the first company in the Philippines to raise the issue of timeliness in cargo delivery and the first company to provide 24-hour home delivery service. It has more than 1,000 branches. Since its establishment, LBC Express has provided Filipinos with fast, safe and reliable logistics, express delivery, freight and other services, and its popularity has increased year by year.

LBC Express has operations in 30 countries around the world, with more than 6,400 agents, locations and partners.

Over the years, LBC Express has never stopped moving forward and actively seeking cooperation. In January 2018, LBC Express announced the completion of a $50 million fundraising to further expand the company's business.

LBC Express

the Philippines