Revenues

For many years, we’ve built on our distinctive strengths—worldwide presence, strong culture, and close to 75 years of experience—to move lives and deliver smiles around the world. And we did so while growing our revenues to its highest level.

In 2019, we reached a key milestone. We surpassed P15 billion in annual revenues, up 23% after a comparatively strong 24% increase in the prior year, and achieved a five-year compound annual growth rate (CAGR) of 17% from 2014 to 2019.

By Segment
We manage our business around the types of services
we offer. As such, we are organized in two operating segments: Logistics and Money Transfer Services. This structure allows us to operate the business from a product perspective and effectively allocate resources and assess performance for the benefit of our customers.

Our Logistics services include domestic and international courier, and freight forwarding services via air, land and sea. Our Money Transfer Services comprise remittance services, bills payment collection, and corporate remittance payouts. Overseas, we also offer fulfillment services for inbound remittances to the Philippines through our own branches, and network of international remittance agents.

In 2019, we made great strides in both businesses.

Revenues from Logistics segment rose 25% to P14.2 billion—approximately 93% of total revenues and almost double the revenues just three years ago. In fact, it grew faster than company-wide revenues at 20% CAGR over the last five years. This outperformance was due to the additional 69 retail branches opened during the year and further supported by a price increase that became effective in October 2018.

Revenues from Money Transfer Services returned to growth with 3% increase to P992.3 million, accounting for the remaining 7% of our revenues. The full-year impact of new services, Cash on Delivery and Cash on Pick-Up, was the highlight, generating P807.3 million in revenues compared to P123.6 million in 2018.

By customer type
We serve two primary customer groups: Retail and Corporate.

In Logistics, we provide Retail customers with express delivery services (courier and air cargo forwarding), and Balikbayan box services. For Corporate clients, we develop specialized solutions tailored to their specific needs in addition to our courier and air cargo forwarding services. Such solutions include sea cargo shipments and value-added services, including onsite operations, cold chain, warehousing, and cross-border logistics.

In Money Transfer Services, our Retail customers are primarily the unbanked population whose various needs are typically different from those addressed by traditional financial services companies. As diverse as they are, our branch retail remittance services enable them to choose their preferred fulfillment options for their beneficiaries, including instant branch pick-up, door-to-door delivery, and remit to account. Under our services for corporate clients, we work with numerous enterprises to facilitate bills payment collection and carry out payout services such as payroll and encashment through our branch network. We’ve also introduced new services for the e-commerce market—Cash on Delivery and Cash on Pick-Up—where we bundled payment solutions with our logistics capabilities to serve online sellers and other micro, small and medium enterprises.

In 2019, Retail customers represented 71% of our revenues while Corporate clients accounted for 29%. Revenues were higher for both customer groups, benefiting from sustained double-digit growth in Logistics.

Revenues from Retail expanded 35% to P10.9 billion driven by a 38% increase in Logistics along with an 8% increase in Money Transfer Services to P925.8 million.

Revenues from Corporate increased 1% to P4.4 billion due to a 2% increase in Logistics to P4.3 billion, partially offset by a 36% decline in Money Transfer Services to P66.5 million.

By geographic market
We derive most of our revenues from the Philippines, and secondarily from North America, Middle East, Asia Pacific, Australia, Europe, as well as other emerging markets.

In 2019, we earned 72% of our revenues in the Philippines and 28% Overseas. Revenues reflected solid results across these markets led by strong contribution from Overseas.

The Domestic market was up 8% to P10.9 billion as Logistics saw continued positive momentum, rising 10% to P10.3 billion. Domestic business for Money Transfer Services, on the other hand, was down 18% to P659.1 million.

Overseas markets had another excellent year for both segments, with revenues climbing 92% to P4.3 billion. Logistics were up 91% to finish the year with P3.9 billion while Money Transfer Services accelerated 104% to P333.2 million.