2GO Group, Inc. (2GO), the country’s leading transportation and logistics company and a subsidiary of SM Investments Corporation, delivered strong second quarter results, with net income of PHP 109 million, representing a solid turnaround from a net loss in the same period last year.
The strong performance was driven by increased activities in the second quarter across major business lines, boosted by shipping and passenger volumes as the economy opened up.
Shipping revenues rose 67%, as sea freight revenues grew 54% and passenger travel revenues grew 155%. Shipping saw increased volumes of goods shipped to the Visayas and Mindanao regions in particular, while passenger numbers also increased significantly as movement restrictions were lifted.
Logistics and other services revenue grew 22%, boosted by the growth in cold chain services, forwarding and ecommerce fulfillment.
In aggregate, 2GO Group, Inc. delivered PHP 8.7 billion in revenues and PHP 74 million in net income for the first six months of 2022.
“Increased economic activity and demand for transportation nationwide helped drive our financial turnaround. Our focus on customer experience and serving high-growth sectors ensures that 2GO is leading in logistics sector growth,” Frederic C. DyBuncio, 2GO President and CEO, said.
“We are encouraged by easing mobility restrictions that have boosted local tourism as well. We are optimistic that this momentum carries on in the second half of the year,” he added.
In addition, 2GO benefited from operational efficiencies and higher service levels due to recent investments in IT and systems and two state-of-the-art ROPAX ships – MV 2GO Maligaya and MV 2GO Masagana. More fuel-efficient ships and vehicle routing systems helped offset the effects of higher fuel costs, among other initiatives.
“Our drive for efficiency, combined with our unique advantages in speed of delivery, reliability and end-to-end transportation solutions enables 2GO to lead in the development of nationwide logistics and help drive economic recovery,” Mr. DyBuncio said.