LBC Express Holdings net income falls despite higher revenues

LBC Express Holdings, Inc. saw a 21.5% decline in its first-quarter attributable net income despite higher revenues, mainly due to higher expenses.

In a disclosure to the stock exchange, LBC Express said its attributable net income stood at P139.73 million, down from P177.89 million the previous year.

This is despite a 14.7% increase in the company’s revenues to P4.36 billion from P3.80 billion in the first quarter of 2020.

“Improvement of revenue is mainly from logistics segment with overall growth of 17%,” the company said.

“Increase in domestic revenue for logistics segment is 13% driven by additional 75 Philippine retail branches and improvement in sales performance of existing branches,” it added.

Total expenses rose 11.17% to P3.88 billion from P3.49 billion previously.

“Cost of delivery and remittance is higher relative to increase in volume,” the company noted.

“There is also a significant increase in outsourced manpower cost to cover operations in warehouses, which opened mid-2020,” it added.

It said depreciation and amortization increased by 26%, pertaining to amortization of right-of-use assets recognized during the period.

LBC Express Holdings shares closed 5.71% lower at P15.84 apiece on Thursday. — Arjay L. Balinbin