2GO net loss expands as crisis hits freight, passenger volumes

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2GO Group, Inc.’s net loss for 2020 widened from a year earlier, owing primarily to the combined effects of weaker freight volumes and fewer passengers amid travel restrictions.

In a disclosure to the stock exchange on Thursday, the listed company, which operates as an integrated transportation and logistics provider, reported an attributable net loss of P1.84 billion for 2020, compared with the previous year’s P890.35 million.

Revenues fell 18.7% to P17.41 billion from P21.41 billion previously.

Broken down, freight revenue decreased 9.97% to P3.03 billion, travel revenue dropped 77.57% to P839.14 million, revenue from logistics and other services fell 13.14% to P5.83 billion, while the goods segment saw a 1.55% growth to P7.72 billion.

Cost of services and goods sold declined 14.24% to P16.86 billion in 2020.

“The pandemic depressed consumer confidence and demand, which in turn weakened the business volumes overall, affecting all our businesses,” 2GO Group President and Chief Executive Officer Frederic C. Dybuncio said.

“These challenges notwithstanding, the group remained steadfast on its multi-year journey of asset consolidation, organizational rationalization, operational optimization, and specialization. This exercise has not only brought cost efficiencies across the group, but also created a stronger operational foundation for the future,” he added.

2GO Group shares closed 1.62% lower at P8.50 apiece on Thursday. — Arjay L. Balinbin

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