LBC swings back to profit in H1

MANILA, Philippines — Courier giant LBC Express Holdings Inc. delivered a series of cost cutting measures to reduce its expenses and return to profit in the first half of the year.

In its financial report, LBC Express reported a net income of P84.31 million in the first semester, reversing a net loss of P82.99 million a year ago.

LBC Express sustained a five percent decline in revenue to P7.37 billion as it received fewer orders from the retail segment and kept its overseas market at the same level.

In spite of this, LBC Express managed to bring down expenses by three percent to P5.87 billion in the first semester from P6.03 billion a year earlier. The firm had to undertake a number of cost cutting programs to withstand macroeconomic challenges, including elevated inflation.

For one, LBC Express reduced manpower count to a number just enough to serve its sales level. It also switched to using roll on, roll off (RoRo) services given that airline fees are rising.

“The air freight cost declined significantly as the company utilized more on RoRo services, rather than airline,” LBC Express said.

For the rest of the year, LBC Express believes that the historical spike in courier demand during the holidays will help it push on its recovery story.

“The group’s operation tends to experience increased volume in remittance transmission, as well as cargo throughout the second quarter and fourth quarter of the year, particularly during the start of the school year and during the Christmas holiday season,” LBC Express said.