05 November 2019
• Revenues increased by +1.7% (+2.9% like-for-like, “lfl”) over the first nine months ended 30 September 2019 compared to the same period in 2018.
• Sales from market clients (excluding historical customers Groupe PSA and Opel Vauxhall) grew by +8.9% in the first nine months.
• Recurring EBIT continued to rise in the first nine months with a +22.1% increase compared to the same period last year.
• The launch of Chronotruck and Moveecar, two innovative digital platforms, support GEFCO’s strategy to deliver supply chain excellence and an elevated customer experience.
Consolidated revenues reached €3,558.2 million for the first nine months of 2019, representing an increase of +1.7% compared to the same period last year. Adjusted for foreign exchange and acquisition-led growth, revenues rose by +2.9% (with a +0.1% positive impact from the acquisition of GLT and a -1.3% negative currency effect).
This solid revenue performance was driven by several factors including:
• Strong performance in finished vehicle logistics (FVL) with a +6.4% increase in revenues, driven by strong market client sales and the positive contribution of the BERGÉ-GEFCO joint venture launched on 1 January 2019. However, sales to Groupe PSA declined compared to the same period last year due to the company’s lower production volumes.
• Steady growth in overland and contract logistics (+ 2.2% revenue increase), driven by good market client performance.
• A sharp decline in air and sea revenues (-24.6%), due to volume decrease globally in the air and sea freight markets and a significant reduction in volumes from Groupe PSA compared to last year.
In terms of operational performance, GEFCO significantly grew its recurring EBIT in the first nine months of 2019, with a +22.1% increase compared to the same period last year.
Luc Nadal, Chairman of the Management Board of GEFCO, commented: “I am satisfied with the Group’s performance over the first nine months despite headwinds in macroeconomics and the challenging automotive market. As a global leader in automotive logistics, our focus continues to be on delivering high-quality service and operational excellence. We must also be smart and agile in our cost management and commercial strategy as the market becomes more difficult and volumes decrease. Innovation and digitalization continue to be key drivers of our strategy. Our recent launch of two digital platforms, Moveecar and Chronotruck, are solid examples of how GEFCO is transforming the logistics sector, bringing new value to customers and addressing the fast-evolving second-hand car market.”
Strong business development was achieved across sectors, geographies and products with Volvo, Tesla, John Deere, WKDA/Auto1.com, Bosch Power Tools, ArcelorMittal or Eska Packaging Netherlands.
Recent commercial development in the third quarter of 2019 included:
• The expansion of GEFCO’s partnership with Emil Frey for cross-border deliveries to central European countries through multimodal compounds
• New FVL distribution services for Hyundai in the north of France
• A new contract with MAHLE Behr to open and run a new European aftermarket logistics centre
• Expanded business with Amazon to prepare fleet vehicles in the UK (and soon in Continental Europe)
• A new contract with LC Waikiki to deliver transport services to CIS countries
• A new Nintendo contract to perform UK domestic transportation services
We have significantly grown our recurring EBIT compared to last year despite deteriorating market conditions, especially in the third quarter of 2019. Our flexible business model allows us to quickly adapt to changing market conditions. GEFCO maintains a very sound financial position with a low gearing and good cashflow generation given its asset light model. Our recent acquisitions and partnerships contribute positively to our financial results and will continue to do so as we ramp up our activity.
Executive Vice President Finance & Strategy
Innovation through digitalization and selected acquisitions is key to GEFCO’s growth strategy. On 23 October 2019, GEFCO officially launched Chronotruck and Moveecar, two “phygital” solutions combining physical capabilities and digital technologies to deliver an unparalleled user experience.
Recently acquired by GEFCO, Chronotruck is a digital road freight marketplace that simplifies deliveries for shippers and carriers through robust algorithms that match demand with available supply. Chronotruck’s agile, accessible digital platform ensures that GEFCO customers have timely answers to their immediate needs.
Moveecar is a digital platform that enables car-as-a-service (CaaS) players, such as car makers, car dealers, fleet managers, rental and leasing companies, auctioneers, e-commerce pure players and mobility players, to provide added-value car logistics throughout the vehicle life cycle. Moveecar is building on GEFCO’s experience in finished vehicle logistics and end-to-end solutions to unlock the tremendous potential of the used-car market.