LBC allots P200 M for capex

MANILA, Philippines – Logistics and remittance service provider LBC Express Holdings Inc. is investing P200 million to expand its business focusing on services geared towards corporations.

LBC president and COO Mike Camahort told reporters after the firm’s stockholders meeting LBC is planning to diversify its services to include other components of the business supply chain.

“We will now penetrate (other segments of) the supply chain. We will go into warehousing, procurement, inventory, consolidation, cold storage,” he said.

Camahort added the expansion program would be implemented within the next two years.

About 17 percent of LBC’s revenues is contributed by its corporate solutions segment while the rest comes from its retail business that includes cargo and remittances.

Aside from expanding its corporate business, LBC also aims to broaden its network and service centers in the countryside.

“We will continue to expand towards getting deeper into the communities for our retail side,” Camahort said.

The company currently has 1,300 branches, making it the largest logistics company in the Philippines in terms of network and coverage.

LBC reported a net income of P217.4 million in the first quarter of 2016, more than double P104.16 recorded in the same period last year.

Though he revealed no figures yet, LBC chief compliance, risk and investor relations officer Enrique Rey Jr. said the company’s mid-year earnings are “better than the first quarter results.”

The company expects its earnings to hit P1 billion this year.

“We’re turning that way, if you annualize the first quarter (figures),” Rey said.

Rey also added profits for the second half should be 10 percent to 15 percent better than the first semester.

“But the big difference that you’ll see from 2014 and 2015, which is indicated in our book, is there are a lot of expenses (investments) that are not gonna be reoccuring in 2016. So you’ll see very healthy profit numbers,” he said.

“Investments that we did two years ago are now bearing the fruits today,” Camahort added.