COURIER LBC Express Holdings Inc. (LBC) said its income before tax last year was flat at P1.37 billion, compared to the P1.33 billion it made in 2016.
The figure excluded the effect of the change in the fair value of convertible bonds, the company said.
Including this figure, the company’s net income fell 22 percent to P707.91 million, from the previous year’s P913.94 million.
In June 20 last year LBC issued $50 million worth of convertible bonds, consisting of a hybrid instrument containing host financial liability and derivative components for the equity conversion and redemption options.
The fair-value changes of the derivative liability was recognized as “loss on derivative” amounting to P199.95 million in 2017.
In its report to the Philippine Stock Exchange, LBC said its revenues increased 15 percent to P10.02 billion in 2017, from P8.7 billion in 2016.
LBC’s operating company, LBC Express Inc., which operates the courier and remittance services, registered growth in net income after tax, increasing 7 percent in 2017 to P984.92 million, from P920.25 million in 2016.
Logistics revenues accounted for the lion’s share, with an 86-percent contribution at P8.98 billion, a 19-percent growth from the previous year.
The company said its logistics revenue—segmented into its retail and corporate businesses—both had a double-digit growth last year.
Retail logistics grew 16 percent to P5.75 billion, from P4.96 billion in 2016, while corporate logistics increased 26 percent to P3.23 billion, from P2.56 billion in 2016.
In the Philippines 57 net new branches were opened across the country, 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 the company’s retail branches in the country increased 12 percent in 2017, contributing a total of P645 million to the company’s total revenues.