Challenging Q3 for LBC Express Holdings, Inc.,
Regaining momentum for 2025
Challenging Q3 for LBC Express Holdings, Inc.,
15 NOV 2024: Manila, Philippines: Relentless in its commitment to serve the nation, and Filipinos all over the world, LBC Express Holdings, Inc., the Philippines’ largest logistics and money services company, continues to adapt and adjust its capacities and services and remains optimistic, moving forward into its 75th year of operations in 2025. Present in 30 countries, LBC continues to serve Filipinos with its reliable logistics and money services.
The Company recently submitted its unaudited results to the SEC / PSE: Operating income increased by 7% to PhP490.40 million for the nine months ended September 30, 2024, from PhP457.89 million for the nine months ended September 30, 2023, mainly owing to an improvement in gross profit and a decrease in operating expenses. Gross profit slightly grew to PhP2.3 billion for the nine months ended September 30, 2024, from PhP2.27 billion for the nine months ended September 30, 2023, as a result of improved efficiencies and cost rationalization. Operating expenses declined to PhP1.79 billion for the nine months ended September 30, 2024, from PhP1.82 billion for the nine months ended September 30, 2023, mainly driven by cutbacks in manpower cost, utilities and supplies, depreciation cost, software maintenance cost and other dues and subscriptions. These movements were offset by increases in professional fees, provision in credit losses, and taxes and licenses. The company embarked on an enterprise-wide restructuring of its operations and configurations, with the aim of streamlining its systems and better serving customers.
Cost of services decreased by 4% to PhP8.3 billion for the nine months ended September 30, 2024, from PhP8.6 billion for the nine months ended September 30, 2023, largely due to improvement in cost of delivery and remittance by 5%, and likewise, facilities costs (rental, utilities, depreciation) by 8%. Furthermore, direct costs were reduced as the company’s management continues its cost rationalization programs, which include facilities consolidation, workforce rightsizing, and improvement of operational touchpoints. Lower manpower, rent, and depreciation costs also contributed to this improvement, as part of the Company’s rationalization of its brick-and-mortar stores. To offset the shortfall yield from the reduction of branches, the Company has appended its capacities for pick-ups of parcels and packages. This complimentary pick-up service has been made available online through the LBC website and mobile application, making it convenient for customers to avail of, anywhere they may be.
The Company’s service revenues decreased by 3% to PhP10.58 billion for the nine months period ended September 30, 2024, from PhP10.88 billion for the nine months ended September 30, 2023, mainly within the retail business segment which declined by 6%. However, this is counteracted by the revenue growth of 10% in the corporate business segment.
LBC adapts to customer needs and delivers superior service through continuous innovation by exploring and embracing new platforms and technologies, and enhancing capabilities, maintaining a commitment to. Well known for pioneering some of the most innovative courier and logistics solutions introduced in the local market, LBC will continuously improve its services, drive operational efficiency, reduce internal costs, and open new revenue streams. The Company’s dedication to embracing a digital mindset is evidenced by its integrated seamless logistics solutions for e-commerce platforms, which enables online retailers to offer reliable delivery options, boosting their sales and customer loyalty.