LISTED integrated transport solutions provider 2GO Group Inc. said Monday its consolidated net income grew 24 percent to P1.34 billion in 2016 from P1.08 billion in 2015 on the back of sustained revenue growth coupled with improved cost efficiencies.
In a disclosure to the Philippine Stock Exchange (PSE), 2GO said operating income grew 40 percent to P2.53 billion last year from P1.81 billion in 2015.
It said operating margin increased to 13 percent from 11 percent in 2015.
Driven primarily by the non-shipping segment, total consolidated revenues last year increased 17 percent year-on-year to P19.28 billion.
Non-shipping revenues jumped 30 percent to P10.32 billion on increased service offerings and improved market share, while the non-shipping business accounted for 54 percent of total revenues, up from 48 percent in 2015.
2GO said shipping revenues grew 6 percent to P8.96 billion due to higher volumes as well as improved vessel turnaround for both large and medium-sized roll-on/roll-off passenger and freight vessels.
Costs and expenses grew by only 15 percent or P16.74 billion on account of cost efficiency measures and due to relatively low fuel prices in 2016, the company said.
Last week, Udenna Corp. expressed intentions to expand its logistics sector in 2GO through its shipping businesses, under the newly appointed 2GO president and chief executive officer Dennis Uy.
Uy is the chairman of Udenna Corp., the parent company of Phoenix Petroleum and Chelsea Logistics Corp. He replaced former 2GO president and CEO Sulficio Tagud, Jr.
with REICELENE N. IGNACIO