LBC Express Holdings Inc. on Monday reported a net loss of P127.82 million in the first nine months of 2024, a sharp contrast to last year’s P215.22 million profit. The logistics and money services giant attributed the loss to an ongoing enterprise-wide restructuring aimed at streamlining its operations and enhancing customer service.
Revenue for the period fell slightly by 3 percent to P10.58 billion, down from P10.88 billion in 2023. The decline was primarily driven by a 6 percent drop in the retail business segment. However, the corporate segment saw a positive revenue growth of 10 percent, which partially offset the overall decrease.
In the third quarter alone, LBC income more than halved, dropping to P65.61 million compared to P130.91 million in the same period last year. Revenues for the quarter also dipped to P3.45 billion from P3.51 billion in 2023.
Despite the challenges, LBC operating income increased by 7 percent to P490.4 million, driven by a reduction in operating expenses and a boost in gross profit. The company’s cost rationalization initiatives, including workforce rightsizing and facility consolidations, contributed to a 4 percent reduction in service costs.
“We remain committed to driving productivity and profitability, investing in operational efficiency, and positioning ourselves for future growth,” said Enrique V. Rey Jr., chief financial officer.
LBC’s restructuring also includes consolidating its physical stores, reducing manpower, and optimizing its delivery network. In response to the branch reductions, the company enhanced its parcel pick-up capabilities, which are now available through its website and mobile app.
Looking ahead, LBC remains optimistic as it approaches its 75th anniversary in 2025, with continued growth across its 30 international markets. The company was recently honored by the Credit Card Association of the Philippines as the Most Trusted Delivery Service for credit cards.
