Logistics firms deliver lower profit in 9 months

Manila, Phillipines — Logistics companies Chelsea Logistics and Infrastructure Holdings Corp. and LBC Express Holdings Inc. reported lower earnings in the nine months ending September.

In a disclosure to the Philippine Stock Exchange, Chelsea said its net income from January to September plunged by 54 percent to P20 million from P43 million in the same period last year due to share in losses on equity investments.

The shipping and logistics arm of Dennis Uy’s Udenna Group said it also deployed bigger new ships, the revenues from which are expected a year after full operation, on average.

“With the acquisition of brand new vessels, expansion of logistics assets and the recent takeover of Supercat, our commitment to strengthen Chelsea’s passage and freight portfolio and deliver value for our stakeholders in the years to come, is coming to fruition,“ Chelsea president and CEO Chryss Alfonsus Damuy said.

“We firmly believe that all of this foundational work will redound to the benefit of Chelsea, cementing its continuous progress towards a more reliable and sustainable Company,” Damuy said.

Revenue-wise, Chelsea saw an increase of 40 percent year-on-year to P5.2 billion, with the logistics business contributing the highest revenue growth at 72 percent.

The growth in the logistics segment came as a result of the group’s continued expansion program anchored on the increase of its warehouse capacity and delivery fleet.

The shipping revenues, which represent 90 percent of the total revenues of the group, posted a 35 percent year-on-year improvement to P4.62 billion.

In a separate disclosure, LBC said its net income after tax in the three quarters declined by 65 percent to P452 million from P1.28 billion last year.

LBC attributed the drop to the loss on derivative attributable to the convertible instrument amounting to P590.94 million, lower foreign exchange gain by P136.37 million, and first time adoption of PFRS16 which resulted in higher depreciation and interest expense.

The listed company of the LBC Group of Companies, however, posted a 27 percent increase in service revenues to P11.57 billion.

LBC said revenues from both the logistics and remittance businesses went up by 28 percent and 13 percent, respectively.

The retail logistics domestic market remained to be the company’s main driver for revenues and growth.

As of end September, LBC’s total number of operational branches in the Philippines stood at 1,454.