LBC optimistic on H2 recovery

MANILA, Philippines —  Express courier LBC Express Holdings Inc. is looking to rebound in the second semester on the back of traditional demand during the holidays.

Based on its financial report, LBC suffered a net loss of P193.43 million in the first half, flipping from a profit of P84.31 million a year ago.

LBC Express dipped into the red because of non-operating losses from foreign exchange, interest expense amounting to P288.78 million and the valuation of convertibles.

For the prior years, the company said that its operating income has steadily grown – increasing by more than 500 percent in 2023 to P555 million from P99 million in 2021.

Amid the economic challenges the company faced due to inevitable cost increases in recent years, productivity has increased by 15 percent in 2024, LBC said in a statement.

The courier saw its revenue go down by three percent to P7.13 billion, as it sustained a seven percent decrease in income from the retail segment during the first half period. LBC Express received a boost of 11 percent from its corporate unit, but this failed to outweigh the retail drawback.

Likewise, LBC Express brought down its service cost by five percent to P5.59 billion. However, this was made possible by a decline in sales volume, meaning the company had to lose customers to incur savings.

“Branch closures were also a factor as part of the rationalization program lowering manpower, rent and depreciation costs,” LBC Express said.

In spite of this, the courier looks to return to growth mode once the season favors it, projecting a demand bump during the Christmas season.

“The group’s operation tends to experience increased volume in remittance transmission as well as cargo through 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.

The company embarked on an enterprise-wide restructuring of its operations and configurations, with the aim of streamlining its systems and better serving customers. LBC has also been making strides in improving its digital infrastructure, with an enterprise-wide adaptation of developing technologies, the company also said in its statement.

LBC remains steadfast and bullish about its growth in the coming years, as it is equipped to navigate fluctuations with internal and external factors.

Into its 75th year, LBC said it would continue to serve Filipinos with its brand of service, care and reliability that has made it a household name in the Philippines.