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Air Cargo Lifts LBC revenues in 2017

Saturday, April 28, 2018
LBC Express Holdings, Inc. recently disclosed to the SEC & PSE its audited financial statements for 2017, with notable results. Revenues of LBCEH increased 15% to PhP 10,020,116 billion in 2017 from PhP 8,695,403 billion in 2016. Gross profit (service revenues less cost of services) also increased to PhP 3,414,084,213 billion from PhP 3,104,889,533 billion in 2016. LBC’s operating company, LBC Express, Inc., likewise registered growth in Net Income after tax, increasing 7% in 2017 to PhP 984,921,653 million from PhP 920,249,493 in 2016.



Logistics revenues continue to contribute the lion share to the company’s coffers, with 86% contribution at PhP 8,981,212 billion, a 19% growth from the previous year. LBC Logistics revenue can be further segmented into its Retail and Corporate businesses, both having double-digit growth in 2017. Retail Logistics grew 16% to PhP 5,751,655,749 billion from PhP 4,964,000,749 in 2016; while Corporate Logistics increased 26% to PhP 3,229,513,847 from PhP 2,557,865,998 in 2016.



Air Cargo revenues grows 24%
The Philippine Civil Aeronautics Board (CAB) released its H1 2017 report citing LBC Express, Inc. holding 34% market share of domestic airfreight cargo forwarding, with a total of 10,075 tonnes forwarded for the first half of the year alone. The company registered total 2017 revenues from Air Cargo alone, however, earned PhP 5,296,098 billion for the company, a 24% increase from the previous year’s PhP 4,269,670 billion.

Sea Cargo revenues have likewise increased, bringing in PhP 1,124,277 billion to the company’s revenues—a 12% increase from the previous year’s PhP 1,008,134 billion. For international inbound cargo, this translates to 5,432 TEUs (twenty-foot equivalent) of incoming sea cargo from the Middle East, Asia-Pacific, Europe, and North America in 2017—predominantly Balikbayan Boxes sent by Overseas Filipinos to their families in the Philippines. Total Sea Cargo TEUs for the company (International and Domestic) reached 8,449 in 2017, up 4% from 8,138 in 2016. Revenues from LBC’s Courier business also increased by 11% in 2017, to PhP 2,006,247 billion from PhP 1,803, 626 billion.

In the Philippines, 57 (net) new branches were opened across Metro Manila, Luzon, Visayas and Mindanao-- bringing the total number of wholly-owned branches to 1,321 by end 2017. This branch expansion continues to provide volume growth while also extending the brand’s reach and footprint. Revenue from Philippines retail branches increased 12% in 2017, contributing a total of PhP 645 million to total revenues of the company.

In the pipeline for 2018, LBC aims to open 100 branches across the country, scattered between populous major cities and likewise going deeper into second- and third-class municipalities in various provinces in the Visayas and Mindanao.

Day 1 Cargo and Instant Peso Padala remain the two most popular services of LBC.

LBC continues to innovate its overall branch experience for millions of customers by continuously making improvements and enable better efficiencies. The company’s commitment to better customer experience is also evident through the multiple touchpoints and Customer Service channels available for inquiries, tracking, and other customer management concerns. LBC now has Customer Care Management by telephone, real-time online service (Chat), Social Media (Facebook, Twitter), and through its own Website. The company’s CCM team handles approximately 2 million calls per year, and 400 emails per day. It has also recently launched a new Application called “LBC Connect” where customers can track their multiple packages and transactions, all through their mobile phones. LBC Connect bookmarks the tracking numbers you searched in the application and also helps customers find an LBC branch nearest them via online branch locator.   Aside from “LBC Connect,” LBC is also repositioning its website to be a major touch point for customers, by establishing a self-service portal. In this portal, a customer will be able to book their cargo for pick-up, track their deliveries, check rates, and contact customer support 24/7. LBC will continue to evaluate new products and technologies as they come to market and will prudently invest in software and devices to enhance the management and efficiency of its operations.

The company has also embarked on a Data-Driven Sales & Marketing program, initiated in the last two years and is well into its operations today. The program seeks to know & understand LBC customers better, and create more value for its millions of customers. Engaging promotions and personalized offers have since been initiated, and these are growing awareness for and retaining loyalty the brand and its services.

In the Corporate Logistics business unit, revenues likewise increased for all segments. Large enterprises, both local and international brands, utilize the services of LBC Business Solutions, and this business segment increased its revenues by 28% in 2017 to PhP 939,533,143 million from PhP 735,372,461 million in 2016. LBC Business Solutions likewise offers its services to Small- and Medium-Enterprises, and this contributed a 42% increase in revenues in 2017, with PhP 283,286,489 million up from PhP 199,586,139 million in 2016, largely driven by the continuous rise in e-commerce and online “social selling.”

The LBC guarantee for excellence and customer satisfaction is supported by its operational efficiencies, as indicated by its growing numbers also in manpower, fleet and equipment. In 2017, total number of delivery couriers increased to 2,189 from 1,776 in 2016, with an average 70 deliveries per day. Within LBC’s distribution centers and hubs across the country, sorting efficiency is maintained at 99.8% (correctly-routed items over total items accepted). As of end 2017, the Company had a fleet of 1,417 vehicles (including 825 motorcycles and 592 vans) and 1,518 handheld units utilized by delivery couriers for real-time updates and online reporting.
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