LBC Express net income surges

LBC EXPRESS Holdings, Inc.’s net income more than doubled last year, boosted mainly by the robust expansion of its air freight and courier services.

In its annual report filed with the Philippine Stock Exchange, the logistics company said its net income for 2016 increased by 120% to P913.9 million from P416.3 million in the prior year.

LBC saw its income before tax rise 93% to P1.32 billion, surpassing its earlier target to hit P1 billion, amid optimism over the country’s growth story.

The courier and money-transfer company also benefitted from favorable freight rates of major carriers, increased utilization of flights and efficient use of sea carriers.

LBC said its service revenues last year rose 13% to P8.695 billion from P7.686 billion primarily due to an increase in revenues from the logistics segment as both retail and corporate sales grew.

Revenues from its logistics business jumped 20% to P7.521 billion last year from the P6.290 billion seen in the preceding year, as the company added 48 new branches. The logistics business accounted for 86.5% of LBC’s total revenues.

“This growth also resulted in an incremental increase in the company’s volumes from cargo forwarding services during the year. Price increase is also implemented at an average of 7% to 9% for Philippines, effective April, 2015, respectively, which resulted to higher price variance for the months of January to March,” LBC said.

Under its logistics business, retail — which include courier, air cargo forwarding and balikbayan box services — contributed P4.964 billion last year, up 21% from 2015’s P4.091 billion. Corporate sales, which include courier and freight forwarding and other specialized corporate logistics services, also rose 16% to P2.557 billion from P2.199 billion.

However, LBC saw a 16% drop in revenues from its money transfer business to P1.173 billion last year, from P1.173 billion in 2015. This accounted for 13.5% of LBC’s total revenues. —