Chelsea Logistics and Infrastructure Holdings Corp., the shipping and logistics arm of Udenna Corporation, has announced a significant financial recovery, reporting a consolidated net profit after tax of PHP 177 million for 2024. This marks a substantial turnaround from the PHP 1.143 billion net loss experienced in the previous year.
This achievement not only signifies a robust rebound but also represents a 24% increase compared to the Company’s net income during its 2017 listing year, highlighting its underlying strength and dedication to sustained growth.
According to Chelsea Logistics CFO Darlene A. Binay, this financial resurgence was primarily driven by a 14% surge in revenue, reaching a record-high of PHP 8 billion. This growth was fueled by increased freight and passenger volumes, improved pricing strategies, and the expansion of both its trading vessel fleet and port operations. Furthermore, a significant 23% reduction in other operating expenses amplified this positive trend, contributing to an impressive tenfold (10.9x) year-on-year increase in operating profit.
The company’s recent virtual Annual Stockholders Meeting, held on April 28 under the theme “Emerging Stronger,” underscored a focus extending beyond mere financial recovery. It emphasized a renewed commitment to strategic digitalization and fostering enduring connections within the communities it serves.
Chelsea Logistics’ success can be attributed in part to effective cost-efficiency initiatives. These included savings realized from external services and dues, diligent control of operating expenses, and a reduction in interest expenses achieved through the Company’s Liability Management Exercise. These efforts have resulted in higher stockholders’ equity, an improved current ratio, and a lower debt-to-equity ratio, strengthening the company’s financial position.
President & CEO Chryss Alfonsus V. Damuy addressed the operational challenges encountered in 2024, notably concerning vessel availability and drydocking schedules. He explained how the Company strategically mitigated these impacts by redeploying vessels to more profitable routes, chartering additional Roll-on/Roll-off (RoRo) vessels and tugboats on a time-charter basis, and proactively enhancing maintenance planning to minimize operational downtime.
Mr. Damuy also confirmed the execution of a Dacion-En-Pago transaction involving a portion of its Taguig City real estate property. This strategic move resulted in a 5% decrease in consolidated total assets and a 16% reduction in current liabilities, optimizing the Company’s asset portfolio and bolstering its liquidity.
In his 2024 President and CEO’s Report, Mr. Damuy emphasized Chelsea Logistics’ strong commitment to digital transformation. The Company has strengthened its partnership with Xendit to enhance the digital payment experience for passengers utilizing Chelsea Travel, its unified online booking system.
Furthermore, Chelsea Logistics has established strategic alliances with leading technology providers, including Oracle NetSuite, Google, Starlink, Amazon Web Services, and KnowBe4. These collaborations aim to drive advancements in cybersecurity, ensure stable internet connectivity, promote digital upskilling initiatives, and foster innovation across its entire stakeholder ecosystem.
Beyond its financial achievements, Chelsea Logistics remains deeply committed to sustainability and social responsibility. The company actively engages in various initiatives, including tree planting efforts, blood donation drives, a feeding program, and education-focused activities such as Brigada Eskwela and its On-the-Job Training Program.
Recognizing the importance of continuous employee development, Chelsea Logistics mandated that all employees complete a minimum of 40 hours of training annually, reinforcing a culture of growth as a fundamental element of its long-term success.
In closing, Mr. Damuy expressed his gratitude, stating, “We extend our heartfelt gratitude to you, our esteemed shareholders, for being with us throughout this extraordinary journey. Your unwavering support and trust have been the foundation upon which we navigate challenges, seize growth opportunities, and expand our presence.”
