LBC Express Holdings Inc., the cargo and courier services provider owned by the Aranetas, nearly quadrupled profits in the nine months to September this year on improved logistics revenue, foreign exchange gains, and asset sales.
“As a result of the foregoing, the company’s profit for the year increased by 356 percent to P336.9 million for the period ended September 30, 2015 from P85.8 million for the period ended September 30, 2015,” LBC said in its quarterly report.
Total service revenues increased by 9 percent to P5.71 billion from P5.215 billion a year ago “primarily due to an increase in revenues from the logistics segment attributable to growth in both retail and corporate sales,” the company said.
Meanwhile, logistics revenue rose 12 percent to P4.65 billion from P4.16 billion previously on f higher volumes and rate of air cargo services rendered.
There were also price increases effective last January and April — 2 percent to 5 percent in its Middle East operations, and 7 percent to 9 percent in the Philippines — which also contributed to growth in the logistics segment.
On the other hand, revenue from money transfer services was flat at P1.05 billion in the first nine months.
Gross profit and other income grew 9 percent and 69 percent, respectively, driven by improved volumes and costs efficiencies, as well as foreign exchange gains and gain on the sale of disposable assets.
In the first nine months, the company added 91 new branches in the Philippines and one branch in the Middle East, which boosted the volume of the company’s forwarding services during the year.
LBC is one of the leading cargo and courier services providers in the country, catering to both bulk cargo logistics and small-time courier deliveries. It has more than a thousand branches in the country and 60 other branches abroad.
The company just concluded its backdoor listing this year via Federal Resources Investment Group Inc.
Under the backdoor method of listing which is a cheaper alternative than making a public offering, a company acquires or enters a listed firm — usually dormant ones with no operations — and then proceeds to change its name and corporate purposes accordingly.