2GO turns around, earns P187M as revenues rise

LOGISTICS firm 2GO Group, Inc. posted P186.83 million in attributable net income in the first quarter, a reversal of the P34.9 million net loss it incurred in the same period last year.

In the three months ending March, the company’s top line reached P5.16 billion, up by 29.2% from the P3.99 billion booked in 2022.

Around P1.71 billion of its revenues came from its logistics and other non-shipping services, which showed a 3% increase from the P1.66 billion recorded in the previous year.

Revenues from freight shipping amounted to P1.53 billion, while sales of goods reached P1.43 billion, a 36.7% and 41.85% jump from last year, respectively.

The company’s cost of services and goods sold went up, which it attributed to higher volumes across its business and higher fuel prices. It reached P5.16 billion in the first quarter, 25.2% higher than the P3.66 billion seen in 2022.

For 2023, the company said it would continue its corporate governance initiatives with the aim of further expanding its service offerings.

“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,” the company said.

The company added that its management “is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward.” 

2GO is a subsidiary of the Sy family’s SM Investments Corp. (SMIC), which provides shipping, logistics and distribution services to consumers, small and medium enterprises, large corporations, and government agencies.

In February, the company’s board of directors approved the voluntary delisting of the 2GO shares from the Philippine Stock Exchange subject to the completion of SMIC’s tender offer, which closed on May 10.

In a disclosure on May 9, 2GO said that during the tender offer period, a total of 352,690,680 common shares or around 14.32% of the total issued and outstanding common shares of the company were tendered and accepted by SMIC.

The accepted tender offer shares were crossed through the stock exchange on May 5 and bought by SMIC at P14.64 per common share or a total consideration of about P5.16 billion.

On Thursday, shares in the company closed unchanged at P13.50 apiece. — Justine Irish D. Tabile