GEFCO delivers strong financial performance in 2018

29 April 2019

GEFCO, the European leader in integrated automotive logistics including Finished Vehicle Logistics (“FVL”) and a top 10 international player in multimodal supply chain solutions (the “Company”) recorded revenues of €4,647.4 million for FY 2018, up +4.6% (+7.9% lfl) compared to FY 2017.

  • 2018 revenues increased by +4.6% (+7.9% like-for-like, “lfl”) compared to financial year ended 31 December 2017 (“FY 2017”) to €4,647.4m, notably driven by volume growth, additional services and developments in new geographies
  • Market Clients (clients excluding historical customers PSA and Opel- Vauxhall) continued to perform strongly with an increase of 6.7% (+11.1% lfl) compared to FY 2017, fuelled by the strong performance of Finished Vehicles Logistics (FVL) across the globe as well as sustained development in non-auto markets
  • Recurring EBIT increased by +15% to €160.3 million, reaching 3.4% margin thanks to the deployment of GEFCO’s operational excellence program and the good performance of GEFCO’s four segments, notably FVL
  • GEFCO delivered an impressive 31.4% return on capital employed (“ROCE”) in 2018 (+40 bps compared to 2017)
  • Very strong balance sheet with a net debt of €318 million as of 31 December 2018, after IFRS 16 implementation (net debt was €69.1m before lease liabilities, implying a leverage of 0.3x)
  • On the back of the strong financial year ended 31 December 2018 (“FY 2018”) results, GEFCO confirms its 2019 guidance and medium-term targets over 2020-2021


Revenues from FVL increased by +5.5% (+8.8% lfl) to €1,869.3 million, mainly driven by Groupe PSA (“PSA”) volumes, additional sales of value-added and mission critical solutions as well as strong development of Market Clients sales. GEFCO won new regional contracts with blue chip customers such as SKODA, Toyota, Volvo Cars, Mitsubishi Motors or BMW.

Overland & Contract Logistics (“OVL”) revenues increased by +4.2% (+7.0% lfl) to €2,237.1 million, mainly driven by a continued good momentum in Market Clients sales, Groupe PSA volume increase and new contract logistics business in countries like France, Turkey and Portugal. GEFCO also delivered numerous crisis management solutions throughout the year.

Air & Sea revenues increased by +0.8% (+7.5% lfl) to €410.4 million, mainly driven by higher revenues from PSA in several countries including France, China and Germany and higher volume of time critical services. GEFCO’ Air & Sea segment continues to develop new and profitable markets such as Life Science and Health Care and solutions such as Time Critical Solutions (TCS) and Industrial Project Cargo (IPC), both of which exceeded expectations.

Industrial Services revenues increased by +12.4% in 2018 to €130.6 million, mainly due to the continued good performance of Group PSA and new services. Industrial Services also benefited from the start of new services at a new Jaguar Land Rover plant in Continental Europe.

Further improvement in profitability with a 15.0% increase in Recurring EBIT for FY 2018 compared to FY 2017. Recurring EBIT reached 3.4% margin in 2018 (+30 bps compared to 2017)

In 2018, the Group’s Recurring EBIT increased by +15.0% to €160.3 million, driven by the continued efforts from the management to implement a broad range of performance improvement initiatives. Profitability increase resulted from the ongoing operational excellence plan focused on profitable growth, notably a commercial strategy based on developing long-lasting and value enhancing relationships, and the success of added-value and time-critical services.

As of 31 December 2018, the Group had a total net financial debt after recognition of lease liabilities (following the early implementation of IFRS16 from 1st of January 2018) of €318 million. In FY 2018, the total net financial debt was €69 million before leases, up from the €21 million in FY 2017, mainly explained by the Group’s investment in working capital to finance its revenue growth.

With like-for-like sales growth of 7.9%, GEFCO continues to outperform its underlying market. We recorded strong performance and improved efficiencies in every segment. We are obviously very pleased with our performance achieved with Groupe PSA through the supply of additional services such as time-critical and our expansion into new geographies. Our Market Clients sales continued to perform strongly despite economic upheaval in some regions such as Latin America. In addition, the deployment of our operational excellence program designed to support long-term profitable growth is showing sustainable progress.

Luc Nadal

Chairman of the Management Board of GEFCO


Pavel Ilichev, Executive Vice President, Finance & Strategy, highlighted: “We are very proud of our 2018 full-year results. Our focus on management excellence has been absolute, and we are confident that we will be able to continue delivering material profitable growth in the years to come. GEFCO is in a very sound financial position, which allows us to invest in new innovative projects and seize selective M&A opportunities.”

FY 2018 key financials(1)

The figures below have been extracted from the consolidated financial statements of the Company for FY 2018.

(€ million)

FY 2018

FY 2017


Var. % lfl






Finished Vehicle Logistics





Overland & Contract Logistics





Air & Sea





Industrial Services





Recurring EBIT(2)





Net financial debt after leases(3)





(1) FY2018 financials are accounted for under new IFRS 16.  FY 2017 are not restated for new IFRS 16. IFRS 16 impact on Recurring EBIT was positive by €2.7m in 2018

(2) Recurring EBIT is measured before non-Recurring operating income and expenses.

(3) Net financial debt after leases corresponds to financial debt including leases net of cash and cash equivalents. Financial debt including leases is the sum of term loan and RCF, bank overdrafts, other borrowings, lease liabilities, derivative instruments, employee profit-sharing fund and guarantees. Net financial debt excluding leases amounted to €69.1 million as of 31 December 2018.

The Group’s agile capital expenditure policy confirms the asset-light model of GEFCO

Both tangible and intangible capex decreased from a combined total of €83 million in 2017 to €79 million in 2018. Most of the capex was dedicated to FVL trucks, trailers and railcars, in line with GEFCO’s strategy.

GEFCO confirms its very strong, flexible balance sheet with a best-in-class Return on Capital Employed (ROCE)

With a 31.4% ROCE in 2018, GEFCO slightly increased its best-in-class ROCE ratio from the 2017 level of 31.0%. This stability is driven by the strong recurring margin improvement growing with the average capital employed.


Key achievements in 2018 support continued commercial development

Commercial highlights

GEFCO renewed a 4-year contract with Opel-Vauxhall in October 2018 for managing all inbound and outbound logistics for the brands in Europe and Turkey. The contract renewal, starting January 2019, demonstrates the strength of this partnership and the continued trust that Groupe PSA has placed in GEFCO.

The development of GEFCO was also marked by several major commercial agreements both in automotive and outside automotive across various sectors.

  • GEFCO continued to develop its inbound and outbound activities in Europe with Renaut-Nissan;
  • In the UK, GEFCO reinforced its successful storage and just-in-sequence operations for tier-one automotive supplier and OEMs in Halewood;
  • GEFCO won a new contract with Leaseplan to prepare and equip fleet vehicles for one of the world’s largest retailer in the UK;
  • The Group also delivered products for Procter & Gamble in Europe and was chosen as the lead logistics provider to design transportation flows for France, Portugal and Morocco for Mecachrome;
  • GEFCO signed new business with Bosch Powertools for Germany and France;
  • GEFCO signed an agreement with Europe’s leading airplane manufacturer to launch a multipurpose fleet of reusable packaging;
  • GEFCO signed a new contract with Cerealto to manage sea shipments between Spain, the United States and Mexico.

Acquisitions and alliances

GEFCO signed a 50/50 joint-venture with Bergé in Spain to create a leading company in the Spanish FVL market. The joint-venture is fully consolidated by GEFCO since January 2019.

GEFCO also acquired GLT, the Europe-Morocco transport specialist.


GEFCO partnered with Techstars to collaborate with highly promising start-ups in various strategic fields for GEFCO. GEFCO also launched GEFCO Innovation Factory to accelerate internal innovation and further nurture an innovation-based culture.  


GEFCO confirms its 2019 targets and its guidance for the 2020-2021 period

For the full year 2019, GEFCO expects revenue to grow by c.4.0% and Recurring EBIT to reach c.€200 million. D&A and capital expenditures are expected to be in line with medium term targets (see below) and working capital change is expected to be neutral.

For the full years 2020 and 2021 (medium term targets), GEFCO expects an organic revenue growth CAGR of c.4.0% with Recurring EBIT margin expected to further improve by 50 bps to 80bps over the period. D&A are expected to amount to c.3.0% of revenue (of which c.55% linked to right of use assets), capital expenditures for tangible assets are expected not to exceed 1.8% of revenue and change in net working capital is expected to be neutral. Average group tax rate is expected to decrease over the period, primarily driven by the decline in the French corporate tax rate.

In terms of dividend, GEFCO will propose to distribute a bit more than €50m this year. For the full years 2019, 2020 and 2021, the Company targets a dividend pay-out ratio from 50% to 75% of net profit attributable to equity holders.

Finally, GEFCO remains committed to a strong balance sheet and targets a maximum post IFRS 16 net leverage of 2.5x, even in the context of potential M&A transactions.

The contemplated initial public offering of the Company on the regulated market of Euronext Paris has been put on hold, however the Company and its shareholders remain committed to the project, subject to market conditions and receipt of regulatory approvals.

Press release & financial contacts

GEFCO - Cédrik Gallien- cedrik.gallien@ - +33(0)149 05 23 91

Investor relations - Emmanuel Huynh - gefco@ - +33 (0)1 44 71 94 99

Media relations - Nicolas Merigeau - gefco@ - +33 (0)1 44 71 94 98

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