2GO Group Inc., the largest integrated logistics provider in the Philippines and a subsidiary of SM Investments Corporation, reported a record net profit of ₱312 million in 2022, marking a “turnaround profit” after two consecutive years of losses.
The company broke its two years of losses in 2021 and 2020, when it incurred losses amounting to ₱1.14 billion and ₱1.84 billion, respectively.
The logistics segment of 2GO Group was the driving force behind its profit increase last year, growing by 30%, with high demand for cold chain services, forwarding, e-commerce fulfillment, and its international courier business.
The company’s revenue increased by 25% year-on-year to ₱19.3 billion, with shipping revenues growing by 67%. Passenger travel revenues grew 217%, sea freight revenues grew 48%, and logistics grew 30%.
Frederic C. DyBuncio, 2Go president and CEO, attributed the company’s success to the reopening of the economy.
“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,” said DyBuncio.
“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,” he added.
The 2GO Group operates in two main business segments, namely the shipping segment, which runs inter-island roll-on/roll-off freight and passenger vessels and freighters; and the logistics segment, which provides a range of transportation services, including air, land, and sea transportation, warehousing and distribution, cold chain solutions, among others.
