Republic of the Philipppines

Polytechnic University of the Philippines – Manila

College of Tourism, Hospitality and Transportation Management

A Financial and Operational Analysis of 2GO Travels

Gladys Jane S. Lagura, Josephine C. Latar, Catherine C. Lemoncito, Christian Exodus L. Mañebo,
Dimple May C. Matias, Aember Faith D. Mauro, Andrea Bren Nicole Mercado
Polytechnic University of the Philippines
Santa Mesa, Manila

Abstract: A thorough overview of the business affairs is provided by the 2GO Group Inc Fundamental Company Report.
All information is provided in a thorough and accessible format. The report contains industry analysis, opinions,
estimates, financial and SWOT data, industry analysis, and stock market experts' annual and quarterly forecasts. The
report also enables direct comparison to be made between 2GO Group Inc and its competitors. A comprehensive
understanding of the internal business environment of the company is provided by the report's detailed information about
2GO Group Inc, which includes information on the company's owners, senior executives, locations, subsidiaries, markets,
products, and company history. An analysis of 2GO Group Inc.'s SWOT is included in the report as well. It entails stating
the goal of the company's operations and identifying the various factors that are advantageous and detrimental to
achieving that goal. Understanding a company's SWOT analysis will help you better understand its strengths, weaknesses,
opportunities, and potential threats. While the introduction of your study only provides an overview, the background of the
study delves deeply into the subject. The introduction can show you the research, aims, and objectives, You can provide
items and services including legal counsel, Return to Sender Drop Off, and consultancy. The production of a corporation
may fall anywhere between these two concepts. We had product and service because, for instance, a shipping firm offers
Special Services that can cater to your demands and provide door-to-door delivery (service).

Keywords: 2GO Travels; financial analysis; SWOT Analaysis; company’s operations

1. Introduction Chinese Government acquired in 2GO Travel

was not made public. On May 26, 1949, the first
1.1. Background of the Study
precursor business to 2GO Group Inc. was
A Philippines-based firm called 2GO,
founded under the name William Lines, Inc. The
also known as 2GO Group Inc., transports
company's former largest owners, Aboitiz Equity
people and goods using the fleet of inter-island
Ventures and Aboitiz and Company Inc., sold
ferries and cargo ships owned by the old Aboitiz
their shares to Negros Navigation Co. Inc.
Transport System—which also controlled the
(NENACO) on December 1, 2010, for US$105
SuperFerry, Cebu Ferries, and SuperCat—as
million. The China-Asean Investment
well as Negros Navigation. The Chinese
Cooperation Fund purchased a majority position
government's acquisition of a majority share in
in the company through an equity infusion at the
Negros Navigation Corporation (NENACO) led
same time, December 2010, Negros Navigation
to the creation of 2GO Travel. The China-
stated. 2GO Travel is one of the biggest and
ASEAN Investment Cooperation Fund, a Dutch-
most well-known travel companies, both on land
based private equity company founded by the
and at sea, with a total history of more than 148
China Export-Import Bank and completely
years in the travel industry. Even people who
owned by the Chinese Government, acquired the
don't utilize shipping services can recognize its
majority share through an equity investment.
distinctive symbol. The 2GO Group's top two
The sum of the controlling shareholding that the

1
shareholders are Trident Investments and SM goods, and fostering company expansion in both
Investments Corp. With more than 400,000 TEU domestic and foreign markets. The largest
(twenty-foot equivalent unit) capacity (about integrated transportation and logistics company
50% of domestic Philippine freight market in the Philippines, 2GO Group, Inc., secured a
share), 16 freight and passenger ships, 15,000 second consecutive victory in the 2019 ASEAN
containers, 35 warehouses nationwide, 550 Corporate Governance Scorecard (ACGS )
trucks, and 7,000 staff. This corporation has the Awards by taking home the ASEAN Asset Class
largest infrastructure in the Philippines.  Award. As determined by the ASEAN Capital
Markets Forum's (ACMF) Corporate
1.2. Products and Services Governance (CG) Working Group, through its
It provides logistics services for e- CG specialists, 2GO is still ranked among the
commerce, including last-mile deliveries and top ASEAN companies in terms of corporate
express courier deliveries, as well as multimodal governance. A 2-Arrow Recognition was also
transportation, warehousing and inventory conferred to 2GO at the 2019 ACGS Golden
management, distribution, special containers, Arrow Awards, which were presented by the
and project logistics. In addition to air travel, Institute of Corporate Directors (ICD), the
2GO offers a comprehensive range of auxiliary ACGS's domestic ranking organization. The
logistics services, including freight forwarding, golden arrow pointing up represents the ongoing
import and export processing, and customs efforts made by Philippine businesses to
brokerage. The business provides nationwide increase adherence to the ASEAN corporate
and worldwide freight, parcel, document, and governance guidelines.
money delivery and transportation services.
Roll-on/roll-off (RORO) and rolling cargo 1.4. Objective and Scope of the Study
services are also offered by the business. Major
ports, cities, and provinces in Luzon, Visayas, 1.4.1. Analyze 2Go Travel’s Current
and Mindanao are serviced by 2GO for domestic Situation through Financial
cargo transportation. Full-Container Load (FLC) Ratios
cargo is moved by 2GO using regular and The study aims to analyze the
special vans that are loaded onto vessels. The current situation of 2GO travels’ finance
other services they provide include 2GO Small through the series of financial ratios being
Cargo (LCL), 2GO Cabin Cargo, Rolling Cargo recorded. The financial ratios each year will
Assist and RoRo Cargo, 2GO Hyperlocal, 2GO be compared in order to observe the changes
Fulfillment Center, General Cargo, Click and in the company’s standing.
Collect, Cash on Delivery, 2GO Dropship, 2GO
Connect, Same Day Delivery, Return to Sender
1.4.2. Analyze 2Go Travel’s
Drop Off, and Special Services. Along with the
Developments
services that 2GO provides, they also sell
The study seeks to investigate the
products. One such product is QuikPac, a pouch
relationship between the developments that
for mailing documents and small packages that
took place in the company and the financial
is available in several sizes and with varying
ratio each year. Through the developments,
weight restrictions. QuikBox, Budget Box, and
the study aims to answer whether the
QuikSave are the other products that they sell.
company’s financial ratio decreased or
increased.
1.3. Recent Developments
With 148 years of experience in the
1.4.3. Suggest Strategies
transportation and logistics industries, 2GO has
This study is significant to
built a reputation for offering the greatest travel
provide the strategies that the company 2GO
experiences, facilitating the swift movement of
Travel can utilize for its improvements.

2
 Along with the abovementioned objectives,
 Transformation of  Natural
the study seeks to provide the possible
services and new calamities
effective resolutions to improve the finance
products  Low cost airlines
and develop the state of the company.
 Have the ability  customers who
or capacity to tends to save
2. Methodology have new route money
and to have a new  on the spot
2.1. SWOT Matrix destination cancellation of
 Have the chance customers
STRENGTHS WEAKNESSES to increase price
due to
exclusiveness
 First to launch a  Advancement of
local luxury cruise  Does not have
Operations
 Affordable fixed rate
 Hiring of
package deal additional
 Reliable logistics  High maintenance employees
company   cost for the
 Effective online facilities
appearance  Does not have 3. Results and Discussion
 Offers a broad international
range of market- services
In addition to being able to deliver our
unique solutions products door to door, 2GO Special Customer
 An equal Services may also create a method that is tailored to
opportunity your particular needs. As a result of their ability to
provider, fostering deliver packages or other items to your home door to
diversity among door, some people's job is reduced in ways that can
choice of people make our lives easier. Second is their ferries are
 Advanced known for being safe and completely prepared in
technology terms of safety, including life jackets for all
 Providing world- passengers and lifeboats. In case of an emergency,
class travel there are medical and security personnel onboard,
experiences and and passengers' luggage is inspected before it is
moving products allowed onboard.
efficiently

3.1. SWOT Analysis

3.1.1. Strengths
OPPORTUNITIES THREATS  2GO Travel is the first company
in the Philippines to provide a luxury cruise. It is
considered one of the best transport and logistics
companies in the Philippines. It has a 149-year
record of leadership and service, offering world-
class travel experiences and effectively moving
products. It also provides affordable package
deals and has advanced technology. The services
are available via the internet, their business
website, and hundreds of ticketing offices

3
around the country. It is an equal opportunity assess and evaluate the financial health of the
provider, encouraging variety in people's choices company. They are one tool that makes financial
and offering a broad range of market solutions.  analysis possible across a firm's history, an
industry, or a business sector. 

3.1.2. Weaknesses
   2GO Travel offers many Table 1. Financial and Operating Highlights (in millions)
advantages, yet it cannot avoid weaknesses. One 2017 2018 2019 2020 2021
problem is that, although offering affordable and
various packages, they do not have fixed rates. Revenues 21,551 21,990 21,410 17,409 15,408
The outflow of cash for ship maintenance is very
Costs of 19,015 20,786 19,671 17,442 14,814
expensive for them. And sadly, the firm has not
Services and
provided international services in recent years; Goods Sold
instead, its services have been exclusive to the
entire country. Gross Profit 2,536 1,204 1,739 (33) 594

General and 2,175 2,160 1,493 897 1,344

Administrative
3.1.3. Opportunities Expenses
 Because a luxury cruise can be
expensive, 2GO Travel has the opportunity to Other - - 198 230 -
Operating
transform new services and innovate new
Expenses
products that will surely increase its revenue. As
an island country, many undiscovered wonders Operating 361 (957) 48 (1,161) (750)
exist in the Philippines. Having new routes and Income
destinations is advantageous to emphasize the Other Charges 423 285 377 663 349
country's beauty while showcasing its innovative
products and services. Since it is exclusive, they Provision for 248 108 90 19 44
Income Tax
could use it as an opportunity to increase their
prices. They can upgrade their engines to more Net Income (310) (1,349) (892) (1,843) (1,143)
advanced models for better and safer operations. (Loss)
The idea of expansion will open opportunities to
Add back:
hire additional employees. 
Financing 390 322 449 406 417
charge
3.1.4. Threats (Interest)
Serious threats will have an
impact on how many passengers use their Provision for 248 108 90 19 44
Income Tax
services and products. These are their rivals,
which could also include other forms of Depreciation 1,883 2,078 2,300 1,856 1,453
transportation like flying, as well as the climate and
and time of year. Substitute bookings, new Amortization

government regulations, changes in weather, EBITDA 2,211 1,158 1,947 439 771
accidents, shipment delays, and customs laws
Net Income (316) (1,346) (890) (1,843 (1,144)
attributable to )
3.2. Financial Ratios Analysis equity holders
The financial ratios analysis is a of Parent
Company
powerful analytical technique that may provide a
thorough overview of a company's financial
performance. Financial ratios are useful tools for 2GO Group, Inc. and subsidiaries has
managers, owners, and potential investors to maintained around 21 billion revenue in the  3

4
consecutive years of 2017-2019 and a gross profit huge letter "G" was removed, greatly simplifying the
around 1-2 billion. While in the year 2020, there is a livery. Both the deck and the waterline still had their
notable decline brought by the COVID-19 pandemic. original hues. Prior to its new purchases in 2021, all of
2020 was a difficult year for all industries. The 2GO's vessels will be painted in this livery.
economic impact of the pandemic also led to the closure
of some businesses and widespread unemployment 5. Resources
which affected all of 2GO’s business units. It generated
an income loss of 33 million and an operating income
loss of 1.1 billion. Despite 2GO’s ability to adapt 2GO. (2021). 2GO Among Top In ASEAN
quickly and return to normal operations, the economic Corporate Governance Scorecard. Press release.
slowdown due to the pandemic remained widespread, https://www.2go.com.ph/wp-
affecting the company’s financial results. It incurred a content/uploads/2021/05/Awards-and-
net loss of 1.8 billion and a drop in sales of almost 4 Citations-2GO-Among-Top-In-ASEAN-
billion pesos. In 2021, it incurred a net loss of 1.14 Corporate-Governance-Scorecard.pdf
billion which is a 38% improvement from the 2020 net Carlson, R. (2022, September 3). What is financial
loss. The gross profit totaled 594 million, an increase of ratio analysis? The Balance Small Business.
1,897% over the previous year. It has trimmed its losses Retrieved September 7, 2022, from
in 2021 from the year prior by focusing on profitable https://www.thebalancesmb.com/what-is-
customers and services and through stringent cost financial-ratio-analysis-393186 
controls. However, this growth was offset by a 48% Financials. 2GO Group, Inc. (2022, May 11).
Retrieved September 7, 2022, from
decline in passenger travel revenue as a result of
https://www.2go.com.ph/financials/ 
quarantine-related travel restrictions in 2021 compared Stern, T., & Movement, T. (2016). Post navigation.
to 2020 which had unrestricted pre-pandemic travel in Journal of Political Risk, 4(6).
the initial months. In the upcoming years, the company https://www.jpolrisk.com/chinese-
intends to address its losses and strives to totally recover investments-in-the-philippines/
from the impact of the pandemic by fleet modernization
and investments in IT systems.  RAMA-PAPER-FIN AL.docx - PDFCOFFEE.COM.
(n.d.). pdfcoffee.com. Retrieved September
8, 2022, from https://pdfcoffee.com/strama-
4. Conclusion paper-finaldocx-pdf-free.html
PSE Edge. (2022). Company Information. 2Go Group,
The company was founded in 2012 as a result of Inc. https://edge.pse.com.ph/companyInformatio
a substantial restructuring of the Philippines' ferry n/form.do?cmpy_id=29
industry, which saw Negros Navigation acquire the
SuperFerry, Cebu Ferries, and SuperCat brands from
Aboitiz Transport System for US$105 million
Simultaneously, a unit of the China-Asean Investment
Cooperation Fund, a private equity corporation
established in the Netherlands and completely owned by
the Chinese government, acquired a controlling position
in Negros Navigation via an equity investment. During
this time, 2GO updated its livery to a more cleaner and
simpler style. While the ships' all-white liveries
dominating the hull and superstructure are comparable to
their previous liveries, this time the funnel, which was
previously painted magenta, is now painted white. The
logo for "2GO Travel," which was previously visible on
the hull, has been changed to only include the word
"2GO," and it is now painted on the funnel as well. The