Negosentro | Improved efficiencies in Q2 for LBC Express Holdings, Inc. | 15 AUG 2024: Manila, Philippines: LBC Express Holdings, Inc., the Philippines’ largest logistics and money services company remains relentless in its commitment to serve the nation, and Filipinos all over the world. LBC continues to adapt and adjust its capacities and services and remains optimistic, moving forward into its 75th year of operations in 2025. Present in 30 countries, LBC continues to serve Filipinos with its reliable logistics and money services.
The Company recently submitted its unaudited results to the SEC / PSE: For the first half of 2024, operating income increased by 14% to ₱331.10 million for the six months ended June 30, 2024, compared to ₱290.94 million for the same period in 2023, due to an increase in gross profit. Gross profit improved by 3% to ₱1,538.84 million for the six months ended June 30, 2024, from ₱1,497.73 million for same period in 2023, predominantly due to improved efficiencies and cost rationalization. The company embarked on an enterprise-wide restructuring of its operations and configurations, with the aim of streamlining its systems and better serving customers.
For the first half of 2024, cost of services decreased by 4% to ₱5,593.45 million from
₱5,874.95 million for the same period in 2023, pertinent to an improvement in delivery and remittance costs. Lower manpower, rent, and depreciation costs also contributed to this improvement, as part of the Company’s rationalization of its brick-and-mortar stores. To offset the shortfall yield from the reduction of branches, the Company has appended its capacities for pick-ups of parcels and packages. This complimentary pick-up service has been made available online through the LBC website and mobile application, making it convenient for customers to avail of, anywhere they may be.
The Company’s service revenues decreased by 3% to ₱7,132.29 million for the six months period ended 2024, from ₱7,372.68 million for the same period ended 2023, due to a decrease in the retail segment by 7%. However, this is stabilized by the growth in revenue from the Company’s corporate segment by 11%.
LBC is well known for pioneering some of the most innovative courier and logistics solutions introduced in the local market that continuously improve its services, drive operational efficiency, reduce internal costs, and open new revenue streams. The Company’s integrated seamless logistics solutions for e-commerce platforms, for example, enables online retailers to offer reliable delivery options, boosting their sales and customer loyalty, is a reflection of the Company’s dedication to embracing a digital mindset. LBC ensures its adaptation to customer needs and delivers superior service through continuous innovation and a customer-centric approach, by exploring and embracing new platforms and technologies, and its effort to enhance capabilities and maintain its commitment to excellence and responsiveness in every interaction. The Company will continuously assess market trends and customer needs to proactively develop solutions that will keep it ahead of the curve.
“It has been another challenging year, operationally, and issues beyond our control such as the global supply chain, and global logistics cost hikes have proven to be testing our resiliency,” said Enrique V. Rey, Jr., Chief Financial Officer of LBC Express Holdings, Inc. He added, “but we focused on controlling what we can, and we are relentless in pursuing our targets, and are committed to moving our nation, and the millions of Filipinos across the globe. We will remain determined to drive productivity, while investing in efficiency and growth. This will enable us to come out of all this stronger, well into the next five to ten years. Our company, our services are necessary and important— and we thank all our customers who trust us, and continue to put their confidence in us.”
“We also thank our Ka-LBCs— for continuously delivering industry-leading service to our customers. They remain committed to serving our customers, and we, the management, are committed to take care of them,” Rey, Jr. ended.
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LBC is the Philippines’ market leader in retail and corporate courier & cargo, money remittance, and logistics services. With a growing network of over 1,500 branches in the Philippines, over 200 hubs & warehouses, and thousands of partners, and agents in 30 countries, LBC is committed to moving lives, businesses, and communities and delivering smiles around the world. Listed in the Philippine Stock Exchange through LBC Express Holdings, Inc., LBC aims to deliver value to all of its stakeholders, as it has for over 75 years. Founded in 1945 as a brokerage and air cargo agent, LBC pioneered time-sensitive cargo delivery and 24-hour door-to-door delivery in the Philippines. Today, it is the most trusted logistics brand of the Global Filipino. LBC can move it for you: download the LBC App, visit www.LBCexpress.com, or call telephone +632 8585 999 (Metro Manila), 1 800 10 8585 999 (Provincial), +632 9086 522 (Solutions) and follow LBCExpress (Facebook and X). For corporate information, visit www.LBCExpressHoldings.com
