LBC Express Holdings suffers nearly 60% drop in net income

LISTED LBC Express Holdings, Inc. on Wednesday reported a 59.50% drop in its attributable net income for 2020, as operating income declined amid a global health crisis.

In a disclosure to the stock exchange, LBC Express Holdings said its attributable net income fell to P200.28 million last year from P494.57 million in 2019.

The company’s service revenues declined 7.18% to P14.12 billion from P15.21 billion previously. Its operating income decreased 38.25% to P790.49 million from P1.28 billion.

“The impact of the pandemic resulted in decline in revenue, recognition of additional allowance for expected credit losses, and receipt of rent concessions from lessors,” the company said.

It added that it incurred pandemic-related expenses such as medical and sanitation supplies, shuttling costs, donation of face shields and face masks, premiums paid to employees and rapid testing costs.

“Management is continuously monitoring the financial impact to the group as the coronavirus disease 2019 situation progresses and as the group maintains its commitment to the continuous provision of services to its customers while ensuring the safety and welfare of its employees,” the company noted.

LBC Express Holdings is a holding company with investments in businesses of messengerial — by sea, air or land — of letters, parcels, cargoes, wares, and merchandise.

It is also involved in acceptance and remittance of money, bills payments, and foreign exchange trading, among others.

LBC Express Holdings shares closed 0.12% lower at P16.28 apiece on Wednesday. — Arjay L. Balinbin