Traxión registered consolidated revenues of 3,184 million pesos in the first quarter of 2020, an increase of 12.3% from the same period of the previous year.
Broken down, the company totaled revenues of 1,873 million pesos in the cargo and logistics segment (+ 9.6%) and 1,310 million pesos in the school transport and personnel segment (+16.3 percent).
Traxión’s total fleet grew 2.9% and the total volume of kilometers increased 4.6% in the quarter. This efficiency contributed to the growth in consolidated revenues.
Traxión offers comprehensive solutions through the country’s widest and most diverse portfolio of services. The company has seven brands and closed the first quarter with an average fleet of 8,236 drive units, more than 424,932 square meters of 3PL logistics warehouse space, a portfolio of more than 1,000 customers, and more than 15,200 collaborators.
According to the company itself, its competitive advantages include: the only consolidator in a highly fragmented sector, the only institutional company within an industry dominated by family businesses, a diversified portfolio of Premium services and long-term relationships with clients and suppliers.
Traxión and its profits
The company’s general expenses increased 14.5% in the quarter, a rate that is above the growth in income and is mainly due to a growth in expenses in the segment of school transport and personnel.
Traxión’s net income for the quarter increased by 46 million pesos, a 55.5% growth compared to the same period in 2019, mainly due to the expansion in the company’s operating activity, as well as to an exchange rate profit. As a result of the foregoing, earnings per share grew 55.6 percent.
Meanwhile, the main variations in operating costs were in the area of fuel and facilities, services and supplies.
Traxion managed logistics operations with its own assets and those of third parties to execute distribution processes for clients.
As a result, the corresponding subcontracts were recorded in the cost of facilities, services and supplies, which explains the increase in this line above consolidated income and as a percentage of income.
In turn, the average price of fuel presented a marginal increase of 0.4% compared to the first quarter of 2019.
However, the cost of fuel decreased both in absolute terms and as a percentage of revenue. This is explained by: efficiencies achieved in consumption with respect to growth in the volume of kilometers compared to 1Q19; and to a lesser extent, by the logistics operations mentioned in the previous point, whose fuel cost is included in the cost of subcontracting.