It is a common perception that the pandemic has ushered in a new normal – online shopping. Online shopping was expected to boost the revenue and net income of delivery and logistics companies. But it turns out that it didn’t give a breakout year for LBC Express Holdings (LBC).
LBC’s service revenue decreased by 7% to 14.1 billion for 2020 from 15.2 billion from a year ago. Worse was that LBC was not flexible enough in its cost structure. It was not able to cut the costs of sales deeper enough to match the decline in revenue, thus, resulting to a decline in gross profit and operating income of around 490 million.
It could be true that the pandemic has increased the volume of online shopping, but LBC may have not benefited as start-up delivery and logistics company are eating up its business. Every other conglomerate is putting up one.
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