12 September 2019
Luc Nadal, Chairman of the Management Board of GEFCO, highlights: “We can be proud of the positive financial results achieved in H1 2019. We maintain our leadership position in European automotive logistics and clearly benefit from our global and multimodal capabilities. Our main customer, Groupe PSA, performed relatively well in H1, especially in Europe. Market Clients sales continue to grow, especially in Finished Vehicles Logistics, off-setting a poor performance in our Air & Sea segment. Our recent acquisition of Chronotruck is an important milestone in our digitalization strategy and I am looking forward to new opportunities to serve our customers with agile, innovative and digital solutions. Finally, I am pleased to say that we are on track to execute our long-term strategy despite current lower volumes and the broader structural changes foreseen in the sector globally.”
GEFCO recorded revenues of €2,480.4 million for the first six months of 2019, vs. €2,401.5 million for the same period in 2018. Adjusted for foreign exchange and acquisition-led growth, revenues rose by +4.2% (with +0.7% coming from the acquisition of GLT in August 2018 and -1.6% from currency effect).
Revenues from Finished Vehicle Logistics (FVL) segment increased by +9.4% to €1,052.1 million, mainly driven by the strong performance of Market Client sales, especially in Europe.
In H1 2019, commercial development remains strong:
Moreover, GEFCO’s FVL segment has benefited from the contribution of the BERGÉ-GEFCO joint venture in Spain and from the positive performance of Groupe PSA in the first six months.
In Overland & Contract Logistics, revenues increased by +3.2% to €1,188.0 million on the back of solid developments in Market Client sales, offsetting a lower performance of Groupe PSA on this segment over the period.
GEFCO’s Air & Sea revenues decreased by 24.8% to €164.9 million. The decline in the Air & Sea segment is mainly due to lower cross-border flows and time critical services coming from Groupe PSA, especially to and from regions such as Latin America and Asia.
Industrial Services revenues increased by +10.1% to €75.5 million thanks to good volumes from Groupe PSA around light assembly services.
Revenues in H1 2019 also showed continued customer diversification within the Group. The share of Market Clients sales reached 47% of Group’s revenues in June 2019 compared to 44% in 2018 on the back of steady growth and the contribution of the BERGÉ-GEFCO joint venture.
In H1 2019, the Group’s Recurring EBIT increased by +23.6% to €117.3m. A strong performance that has been achieved due to:
I am very satisfied with the financial performance GEFCO achieved over these first six months, in line with our expectations. The various improvement initiatives that we have implemented continue to pay off, driving our recurring EBIT margins up vs. last year. The sound financial position of the group also allows us to invest in strategic projects through our own cash and existing financing, with enough flexibility to finance our future growth ambitions.
GEFCO’s Executive Vice-President, Finance & Strategy
The figures below have been extracted from the condensed interim consolidated financial statements of the Company for the six-month period ended 30 June 2019.
Finished Vehicle Logistics
Overland & Contract Logistics
Air & Sea
Net debt (under IFRS16)(3)
(1) H1 2019 and H1 2018 financials are accounted for under new IFRS 16 following early implementation of IFRS16 from 1st January 2018.
(2) Recurring EBIT is measured before non-Recurring operating income and expenses.
(3) As of 30 June 2019, the Group had total net financial debt of €439.7 million after IFRS 16. Excluding IFRS 16 lease liabilities and put options, the net financial debt amounted to €94.2 million.
In June, GEFCO acquired Chronotruck, a company that connects shippers and carriers through an innovative digital platform. This acquisition supports GEFCO’s strategy of leveraging new technologies to enhance the customer experience and offering fully digitalized services to meet the needs of current and future logistics ecosystems. To date, Chronotruck has already served more than 9,000 customers.
GEFCO’s internal Innovation Factory marks its 1st year anniversary and the Group confirms a tangible impact on nurturing innovative ideas from employees around the world. In addition, its partnership with Techstars, an international renowned accelerator, has helped GEFCO develop several innovative projects with startups that are soon to be deployed.