LBC Express Holdings Inc., the country’s largest logistics and money services company, registered a 7-percent increase in operating income to P490.40 million in the first nine months of the year from P457.89 million in the same period in 2023 on improved gross profit and a decrease in operating expenses.
In a report to regulators, LBC said its gross profit slightly grew to P2.3 billion during the nine-month period in 2024 from P2.27 billion in the same period in 2023, as a result of improved efficiencies and cost rationalization.
The company said its service revenues decreased by 3 percent to P10.58 billion from P10.88 billion last year, mainly within the retail business segment which declined by 6 percent. However, this is offset by the revenue growth of 10 percent in the corporate business segment.
LBC said its operating expenses declined to P1.79 billion from P1.82 billion last year driven by cutbacks in manpower cost, utilities and supplies, depreciation cost, software maintenance cost and other dues and subscriptions.
According to LBC, these movements were offset by increases in professional fees, provision in credit losses, and taxes and licenses. The company embarked on an enterprise-wide restructuring of its operations and configurations, intending to streamline its systems and better serve customers.
The cost of services decreased by 4 percent to P8.3 billion from P8.6 billion largely due to an improvement in the cost of delivery and remittance by 5 percent, and facilities costs (rental, utilities, depreciation) by 8 percent.
The report said direct costs were reduced as the company’s management continues its cost rationalization programs, which include facilities consolidation, workforce rightsizing, and improvement of operational touch points.
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, LBC 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.
Moving forward into its 75th year of operations in 2025, LBC said it continues to innovate by exploring and embracing new platforms and technologies and enhancing capabilities, maintaining a commitment to. “We will remain determined to drive productivity and profitability while investing in efficiency and our future growth. We are adjusting operations to address new capabilities,” said Enrique Rey Jr., chief finance officer of LBC Express Holdings.
