Business

P55M loss provision: 2Go expects more SMEs to default on dues for the rest of 2020

2Go Group Inc., the shipping concern of bilyonaryo Dennis Uy and the SM group, is bracing for more harder times in the second half of 2020.

2Go has earmarked P55 million loss provision in anticipation of more customers failing to pay their bills.

“It is expected that trade receivables, particularly those due from small- and medium-scale enterprises, will likewise deteriorate in collectability and may necessitate provisioning for estimated losses due to non-collection as may be deemed prudent,” said 2Go.

2Go suffered an 18 percent or P2 billion drop in sales in the first half of 2020 due to the coronavirus lockdown which started in mid-March. Its net loss ballooned by 113 percent to P733 million in the first half of 2020.

“Given the restricted mobility in and out of the country and the curtailed economic activities affecting demand not only in the Philippines but in other countries, the Group expects a decline in sales/revenue volumes during the period and the subsequent months beyond the lifting of the quarantine measures” 2Go said.

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