LBC Express and UnionBank ink ₱1.62-billion loan deal

LBC Express Holdings has entered into a ₱1.62-billion loan deal with UnionBank of the Philippines, Inc, via its subsidiary LBC Express, Inc.

“The proceeds of the loan shall be used to partially finance the construction of LBCE’s (LBC Express) new warehouse, importation and installation of a sorting machine, and land acquisition via loan take-out,” said LBC Express Holdings.

LBC Express Holdings recently reported a 21.5% decline in its first-quarter attributable net income despite higher revenues, citing higher expenses as the main issue.

The company’s attributable net income stood at ₱139.73 million, down from ₱177.89 million the previous year, despite a 14.7% increase in the company’s revenues to ₱4.36 billion from ₱3.80 billion in the first quarter of 2020.

Total expenses rose 11.17% to ₱P3.88 billion, up from ₱3.49 billion.

Its depreciation and amortization increased by 26%, due, in part, to the amortization of right-of-use assets recognized during the period.

LBC Express Holdings shares closed 4.65% lower at ₱16 apiece on Tuesday.

SOURCE: Business World