In a recent financial report, leading logistics company Traxion revealed a remarkable 21% increase in consolidated revenues, amounting to 5.98 billion pesos during the second quarter of the year. This substantial growth was in comparison to the same period in 2022, reflecting the company's robust performance in a dynamic market.
The company's impressive results were largely attributed to the flourishing nearshoring trend, which has opened up numerous opportunities in the North and Bajío regions. Nearshoring, a strategic practice of moving business operations closer to the home country, has gained traction due to its potential for cost savings, reduced lead times, and enhanced operational efficiency. Traxion capitalized on this trend, seizing growth prospects in key geographical locations.
A detailed breakdown of Traxion's revenue sources showed that its logistics and transportation segment experienced an astounding 47.5% year-on-year growth. This surge was complemented by a commendable 20% increase in the people mobility segment. The company highlighted that both these segments demonstrated strong and sustained demand for their services, primarily driven by organic growth.
Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Traxion during the second quarter reached an impressive 1.162 billion pesos, signifying a notable 35.3% growth compared to the same period in 2022. This substantial EBITDA growth is an indicator of the company's operational efficiency and profitability during the reporting period.
Traxion's performance in the North and Bajío regions was supported by an average fleet of 10,275 vehicles operating during the second quarter of the year. The extensive fleet allowed the company to effectively cater to its growing customer base and efficiently meet market demands.
In line with its expansion strategy, Traxion made a significant move by acquiring BBA Logistics, a freight brokerage company headquartered in the United States. BBA Logistics specialized in door-to-door and cross-border services, offering Traxion an opportunity to establish a foothold in the US market. This strategic acquisition aligned with the company's vision for international growth and diversification.
Zooming out to the first half of the year, Traxion's overall revenues for the January-June period reached an impressive 11.744 billion pesos, showcasing a remarkable 24% annualized increase compared to the same period in 2022. The logistics and transport segment emerged as the primary revenue generator for the company during this period, contributing 4.267 billion pesos, marking a solid 21% increase year-on-year.
The logistics and technology segment secured the second spot in revenue generation, with 3.804 billion pesos and an astounding 48% growth rate. Meanwhile, freight mobility witnessed revenue of 3.673 billion pesos and a respectable 8.8% growth compared to the first six months of 2022.
For the first half of this year, EBITDA reached an impressive 2.153 billion pesos, showing a robust increase of 26.3% compared to the same period last year. This demonstrated Traxion's efficiency in managing costs and operations during its expansion and growth phases.
Traxion's success story underscores the strategic advantage of identifying and capitalizing on emerging market trends. By aligning with the nearshoring trend and focusing on organic growth opportunities, the company has proven its ability to navigate a competitive landscape and deliver substantial financial results.
As Traxion continues its expansion into the US market with the acquisition of BBA Logistics, the company's future growth prospects appear promising. With a strong performance in the first half of the year and a solid foundation in its logistics and transportation segments, Traxion is well-positioned to sustain its upward trajectory and create value for its stakeholders in the ever-evolving logistics industry.