LBC Express Holdings, Inc. on Monday reported that it swung to a loss in the third quarter of the year, mainly due to higher expenses.
The listed company said its attributable net loss for the quarter was P64.22 million, compared with a profit of P448.50 million in the same period a year earlier.
“This is mainly driven by higher cost of sales, interest expense and loss on derivatives for 2021,” the company said in its quarterly report.
Many companies like LBC Express have incurred pandemic-related expenses such as medical and sanitation supplies, shuttling costs, and rapid testing costs.
The company’s service revenues for the third quarter declined 2.3% to P3.90 billion from P3.99 billion in the same period last year.
Cost of services for the period rose 20.4% to P3.13 billion from P2.60 billion previously, bringing its gross profit to P772.04 million, down from P1.39 billion in the same period a year earlier.
For the nine-month period, the company reported an attributable net income of P246.34 million, a turnaround from a P53.23-million loss in 2020.
Total revenues for the period increased 27.9% to P12.32 billion from P9.63 billion in the same period last year.
Nine-month cost of services climbed 27.8% to P9.43 billion from P7.38 billion previously.
“Cost of delivery and remittance is higher relative to increase in volume. This also resulted to increase in materials and supplies which is presented under ‘utilities and supplies,'” the company said.
“In relation to the implemented processes to ensure safety, security measures and social distancing, the company added domestic warehouses in mid-2020 which contributed to increase in manpower cost, utilities and office supplies, and depreciation and amortization for fixed and right-of-use assets,” it added.
LBC Express shares closed unchanged at P21 apiece on Monday. — Arjay L. Balinbin