2Go profit tanks in 1st half
2GO Group Inc. reported a 79 percent drop in first half earnings to P120.1 million.
The country’s largest shipping and logistics company attributed the profit decline to surging fuel prices and the recognition of restatement adjustments for provision for bad debts and inventory and related party adjustments.
Excluding the non- recurring restatement adjustments, net income for the first semester would have been P327.2 million compared to P612 million in the same period last year.
Consolidated revenues reached P11 billion, up 14 percent year on year. Passenger revenues accounted for P2.57 billion or an increase of 11 percent as volume grew by more than 54,000 passengers for long-haul trips and more.than 28,000 passengers for short haul.
Freight revenues, on the other hand, rose three percent to P2.14 billion as volume expanded by 2,200 twenty-foot equivalent units (TEUs) even though ships were affected by berthing congestions in its five major ports.
Revenues from logistics revenues amounted to P2.58 billion, higher than the year ago’s P 2.08 billion.
The new management of 2Go, headed by Davao-based businessman Dennis Uy and the SM Group of tycoon Henry Sy is ” very optimistic that the growth of 2GO will reach even greater heights as it moves forward to further grow the business and become an even stronger player from 2017.”