13 May 2019
Consolidated revenues reached €1,239.2 million for Q1 2019, representing an increase of +7.8% compared to Q1 2018. Adjusted for foreign exchange and acquisition-led growth, revenues rose by +9.0% (with a 0.8% positive impact coming from the acquisition of GLT and a -1.9% negative currency effect).
The growth in revenue was underpinned by several factors:
GEFCO also recorded a strong increase in recurring EBIT and improvement in margins in Q1 2019 compared to Q1 2018 mainly due to (i) the newly renegotiated contract with Opel-Vauxhall (ii) the BERGÉ-GEFCO joint venture contribution and synergies and (iii) the continued focus on operating excellence throughout the organization.
Luc Nadal, Chairman of the Management Board of GEFCO, commented:“I am very pleased with our Q1 performance. We continue to outperform our underlying market. We keep creating value for Groupe PSA, achieving very positive results in the first three months of our newly renegotiated contract with Opel Vauxhall. Market Clients sales kept growing steadily, particularly within Finished Vehicles Logistics and Overland & Contract Logistics. The new BERGÉ-GEFCO joint venture in Spain has got off to an excellent start. All in all, I remain very confident that we will achieve our operational and financial targets for the full-year 2019 and our 2020-2021 guidance.”
GEFCO’s commercial development was robust in Q1 2019. Indeed, the Group won several new major contracts, while renewing its business with a number of tier-one auto and non-auto customers around the world.
Our focus on managing excellence throughout the organization continues to drive robust commercial and financial results. Our strategy through external growth and partnerships also contributes positively to our consolidated financial results and fully meet our growth ambitions. GEFCO’s healthy financial situation will allow us to pursue additional growth opportunities in the near future.
Executive Vice President Finance & Strategy
The BERGÉ-GEFCO joint venture in Spain is performing in line with management expectations and the synergies produced by the integration process are contributing positively to both revenues and profitability of the Group. The commercial development is strong with existing and new customers. For example, BERGÉ-GEFCO has recently been awarded a six-year contract extension with a major German OEM.
GEFCO continues to nurture innovation through three main axes: digitalisation with for instance its Moveecar service that allows a customer to organise door-to-door transport of a single car; asset and flow optimisation through track & trace or high precision localisation devices; and, production centres 4.0, looking at new technologies on GEFCO’s compounds and warehouses.
The partnership with Techstars, an international accelerator, is also driving excellence within the organization. GEFCO has partnered with two disruptive players to address GEFCO’s innovation priorities and also help GEFCO accelerate its own internal innovation factory.
Our good commercial momentum comforts our ability to achieve GEFCO’s targets for 2019 and for the 2020-2021 period which were already confirmed in the full year 2018 press release, on 29 April 2019.