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2GO Group Inc
2GO Group Inc
2GO Group, Inc. (2GO) was formed and organized in May 26, 1949 under the corporate name William
Lines, Inc. On December 21, 1995, William Lines, Inc., Carlos A. Gothong Lines, Inc. and Aboitiz Shipping
Corporation consolidated their resources and expertise and marked the birth of William, Gothong & Aboitiz,
Inc. (WG&A). Then on February 4, 2004, WG&A changed its corporate name to Aboitiz Transport System
Corporation as a result of the buyout made by Aboitiz Equity Ventures, Inc. of the Chiongbian and Gothong
holdings in WG&A in 2002. The Securities and Exchange Commission approved a subsequent change of the
corporate name to the present one on March 9, 2012.
2GO Group Inc. is the country’s leading end-to-end supply chain logistics company. 2GO has made its mark
for providing class-leading travel experiences, efficient movement of products and cargoes, and catalyzing
business growth in domestic and international markets.
Today, 2GO owns and operates successful brands such as 2GO Travel, 2GO SuperCat, 2GO Freight, 2GO
Express, 2GO Logistics, and 2GO Special Containers. Under a single company brand, 2GO is able to leverage its
size and provide customized solutions that address the needs of our clients and customers with the best
customer service and value. Their core services include multi-modal transportation, warehousing and
inventory management, distribution, special container services and project logistics, e-commerce logistics
including last-mile deliveries, and express courier deliveries. 2GO also offers travel and fast ferry services, and
a wide range of peripheral logistics services such as freight forwarding, import and export processing, and
customs brokerage.
BOARD OF DIRECTORS
• Dennis A. Uy - Chairman
• Frederic C. DyBuncio
• Elmer B. Serrano
Services s
• Subsector
Transportation Services
• Incorporation Date
1949-05-26
• Corporate Life
50
• Extension
2004-03-30
• No. of Directors
9
• Fiscal Year
01 January to 31 December
• External Auditor
• Issued Shares
2,500,662,816
• Listed Shares
2,484,652,900
• Outstanding Shares
2,462,146,316
• Free Float Level
11.9%
• Market Capitalization
23,193,418,296.72
• ISIN
• PHY9017S1034
Issue Type
• Common
• Listing Date
• Status
Open
• Board Lot
100
• Par Value
1
40%
(0.55)
• Interim EPS
(0.08)
• Interim Period
6 months Jun-19
As of January 24, 2020 04:09 PM
In the year 2017, 2GO has undergone special audit conducted by SyCip Gorres Velayo & Co. with the
request of the new President and new set of Board of Directors and it showed that there is alleged inflation of
financial statements since 2015. The audit revealed such certain accounts in the previously audited financials
required restatements, and the new management, with the support and approval of the newly elected
members of the audit committee and the board of directors, agreed to restate prior period financial
statements to reflect fairly the state of the business. The restatement is a commitment of the new
management and the board of directors to raise corporate governance standards in the company.
The reputation of KPMG RG Manabat & Company is on the line over alleged inflated financial statements
of 2GO Group Incorporated, which is being investigated by the Securities and Exchange Commission. KPMG RG
Manabat & Company said it is confident that its audit was in compliance with the Philippine Standards on
Auditing. According to them, the standards require that they comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatements.
The restated financial results shaved off 90% of the company’s net income in 2015 to P109.131 million,
from P1.08 billion as the 2GO earlier reported. The company also restated its 2016 net income to P344.035
million, or 74% lower that the P1.34 billion as reported earlier by the company. 2GO said its first quarter 2017
results should have indicated a net loss of P264.86 million, contrary to an earlier reported net income of
P267.562 million.
Income Statement
Year Ending Previous Year Ending
Net Income/(Loss)
Attributable to Parent 1,325,443 1,069,231
Equity Holder
Income Statement
Net Income/(Loss)
420,527 412,398 420,527 412,398
Before Tax
Net Income/(Loss)
267,562 290,928 267,562 290,928
After Tax
Net Income
Attributable to
266,837 286,936 266,837 286,936
Parent Equity
Holder
Earnings/(Loss) Per
Share 0.1 0.12 0.1 0.12
(Basic)
Earnings/(Loss) Per
Share 0.1 0.12 0.1 0.12
(Diluted)
ANALYSIS
As per audit by SGV, net income of the group for the past two years, should be reduced based on its actual
performance. One of the arguments the management might throw with regards to the issue of overstating the
net income is its effect on taxes. Higher income will just indicate a higher tax amounts to be paid by the entity.
“So, what is the point of making or presenting our net income overstated?”, said by the former president,
Sulficio Tagud in defending the group against the issue.
According to a professor, The restatement of the company’s reported earnings for 2015 and 2016 is
curious, because it does not immediately appear to benefit the new owners of 2GO. The recent special audit
was supposed “to establish the baseline accountability of the new management.” And one business professor
observed that one of the oldest tricks in the new manager’s playbook is downplaying the past performance of
the previous manager (by downgrading his financial results) so that current and future results turned in by the
new manager will look even better to his masters.
The ex-2GO chief said that as a courtesy procedure, when the financial statements audited by an auditor
will restated by another auditor, the current auditor should at least discuss and seek concurrence from the
prior auditor which the current auditor failed to do so.
EARNINGS of 2GO Group, Inc. dropped by more than a third in the second quarter as costs grew mainly
due to higher fuel prices. The listed shipping and logistics provider posted an attributable net income of
P102.3 million in the second quarter, down 36% from P159.66 million in the same period last year. Total
revenues grew 7% to P6.12 billion during the three-month period, but it was offset by rising cost of services
and goods sold, which jumped 10% to P5.5 billion. 2GO swung to an attributable net loss of P189.37 million
during the first half, from a profit of P199.39 million last year. Six-month revenues went up by 5% to P12
billion, much of which was driven by stronger returns from the company’s non-shipping business. 2GO’s
logistics and distribution business added P7.14 billion to the company’s total revenues in the first half of the
year, an increase of 10% from last year due to the growth of its courier, e-commerce, cold chain and isotanks
and distribution businesses.
However, shipping revenues slid 1% to P4.87 billion during the period on increased competition in the
freight segment. Non-shipping revenues accounted for 59% of the company’s revenue pie in the first half of
the year, while the remaining 41% came from shipping revenues. Cost of services and goods sold during the
six-month period climbed 10% to P11.14 billion due to higher fuel prices. “Fuel prices increased by 10%, and
2GO was impacted by a negative price variance of P139 million for the first half of the year,” it said in a
regulatory filing.
For the year, the company said it wants to “expand and further enhance its service offerings” by improving
the streamlining of operations and collaborations within its businesses units, investing in warehousing and
logistics solutions and initiating synergies with its new shareholders.
• 2GO SuperCat is once again named the BEST SEA TRANSPORT in ORMOC CITY
Currency
(indicate units, if Php '000 (In Thousands)
applicable)
Balance Sheet
Retained
(1,855,821) (1,084,205)
Earnings/(Deficit)
FUNDAMENTAL ANALYSIS
Dividends Per
Fair Value: - - 0
Share (DPS):