Ferry operator 2Go Group Inc., a unit of conglomerate SM Investments Corp., said it swung to profit last year as its revenues rose by a quarter.
The company said it posted a net income of P312 million in 2022. Group revenues reached P19.3 billion, some 25 percent higher than the previous year’s P15.4 billion, as the company benefited from the reopening of the economy and the complete lifting of mobility restrictions.
2Go said its financial performance last year snapped two straight years of losses which reached P1.14 billion in 2021 and P1.84 billion in 2020.
“Our 2022 growth was the result of high demand for our services with the opening up of the economy while our increased profitability was also driven by the structural changes and financial discipline we have put in place. These changes are fully ingrained in all parts of the business and will benefit us in the long term. We are optimistic about ongoing momentum in 2023,” Frederic C. DyBuncio, 2Go president and CEO, said.
“Additionally, we continued to make bold investments as opportunities arose during the pandemic. Our aim remains to be the best-in-class logistics and transportation provider in the Philippines.”
Shipping revenues last year rose 67 percent, as revenues in its passenger travel business tripled, The company said there was a 48 percent increase in sea freight revenues for the year.
“Improving market conditions aided volume momentum in shipment of goods, while the holiday season boosted passenger numbers.”
Logistics and other services revenue grew 30 percent, led by the growth in cold chain services, forwarding, e-commerce fulfillment and its international courier business.
The company’s shipping group operates inter-island roll-on/roll-off freight and passenger vessels and freighters. The logistics group offers transportation via air, land and sea, warehousing and distribution, cold chain solutions, domestic and international ocean and air forwarding services, customs brokerage, project logistics and express and last mile package and e-commerce delivery.
The distribution group, meanwhile, leverages 2Go’s shipping and logistics services to provide value-added distribution services to local and international principals and customers.