MANILA, Philippines — Express courier LBC Express Holdings Inc. fell to a net loss in the nine months to September as the company borrowed fresh loans from local banks for project funding.
Based on its financial report, LBC Express incurred a net loss of P240.86 million from January to September, a reversal from its profit of P242.38 million a year ago.
While LBC Express slashed expenses by three percent to P8.3 billion, this was offset by a three-percent reduction in revenue to P10.58 billion.
Likewise, LBC Express hiked its interest expense by eight percent to P420.26 million as of September, from P388.45 million a year ago. The courier availed itself of more than P82 million in loans in the third quarter alone to fund its capital expenditures.
Broken down, LBC Express borrowed P45.71 million from the Rizal Commercial Banking Corp. (RCBC) in August, to be paid immediately in October. Afterward, the company secured another loan from RCBC, worth P26.47 million, this time maturing in May 2025.
LBC Express also borrowed P10 million from BDO Unibank Inc., payable in March 2025.
As fresh debts were obtained, LBC Express paid portions of its maturing loans, including P7.98 million and P2.2 million owed to the Union Bank of the Philippines.
As of September, LBC Express has assured its shareholders that the courier is compliant with all of its debt covenants.
Revenue-wise, LBC Express said its retail segment fell by six percent, but the company posted a 10-percent jump in its corporate accounts. The courier sources the bulk of its earnings from cash transfers and door-to-door deliveries here and abroad.
LBC Express also cut its expenditures to mitigate the impact of declining revenue to its finances. The courier reduced business costs by five percent and maintenance costs by eight percent.