BIZ BUZZ: More trouble in two-wheeler paradise
Looks like the problems hounding this once white-hot brand are worse than we initially thought.
Financial documents provided Biz Buzz showed that the losses of this company— which we first reported to have been significantly reducing its headcount—have been growing at a worrying rate over the past three years, from P274.36 million in 2022 to P334.272 million in 2023 and then to P438.555 million at the end of last year.
Competition has also eaten into its top line, which declined to P555.03 million in 2024 from P716.249 million in 2023.
Cash on hand during the period also plunged from P641.95 million in 2023 to just P177.075 million.
This unfortunately, already includes a new loan of P50 million taken in November of 2024 to help cover working capital requirements.
It carries a hefty interest of 1.5 percent a month and has a term of three years. Payables to government agencies have also more than doubled in recent years.
And the list of woes goes on, which then begs the question: How long can this company afford to stay on the road?
It is scrambling for solutions, from bringing in emergency cash as well as hiring talent to find the right path toward profitability.
Will it succeed? Abangan!
