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GEFCO group further improves its financial performance in first half 2018

10 October 2018

GEFCO Group, a global player in integrated supply chain solutions and the European leader in automotive logistics, today announced strong financial results for the first half of 2018.

  • Solid revenue growth of 6.2% driven by strong sales of integrated logistics solutions to a broad customer base
  • Strong financial results for the first half of 2018 with improvement in profitability
  • Focus on growth through strategic alliances and launch of GEFCO Innovation Factory

Solid revenue growth of 6.2% driven by strong sales of integrated logistics solutions

  • The Group’s revenues increased by 6.2% to €2,402 million. The growth was driven by GEFCO’s double-digit increase in Value Key Accounts (international integrated logistics customer portfolios) and results from a continued effort to leverage GEFCO’s expertise in complex logistics solutions to win new customers’ trust and increase business with existing ones by cross-selling or up-selling its service offering. 
  • The Group’s 69 years of expertise in automotive logistics continued to generate robust sales of complex integrated logistics services to blue-chip customers across various sectors worldwide. For example, GEFCO started delivering vehicles in Russia for Renault-Nissan (now allied with Mitsubishi Motors). The Group reinforced its successful storage and sequencing operations for tier-one automotive suppliers and OEMs in Halewood, UK. GEFCO also opened a second facility in Nitra, Slovakia, to service car equipment company Lear Corporation. 
  • GEFCO rolled out solutions in France and Europe for Mecachrome, a global leader in the design, engineering, manufacturing and assembly of complex precision-engineered components for the aviation and automotive industries. GEFCO was chosen as the lead logistics provider (LLP) to design transportation flows in France and between France, Portugal and Morocco. 
  • In Brazil, the Group was selected by John Deere to deliver agricultural machines in Brazil and to neighbouring countries (Argentina, Bolivia, Brazil, Chile, Paraguay, Peru and Uruguay).
  • GEFCO continued supporting Amazon in several European countries by organizing inbound collection from vendors, as well as cross-docking operations, including at GEFCO Dartford in the UK.
  • GEFCO launched a European supply chain network for TEDi, a Germany-based retailer of convenience products. 
  • In Spain, the Group was selected by Spanish train manufacturer Talgo to deploy industrial project cargo (IPC) solutions for the new Mecca–Medina high-speed railway.
  • GEFCO also achieved success in its fast-growing Time Critical Solutions business, offering tailored services to demanding customers with urgent needs around the world. For example, GEFCO transported broadcasting equipment for French TV stations to the cities hosting the 2018 FIFA World Cup in Russia in addition to managing customs and other formalities. In Australia, GEFCO designed, tested and implemented a unique new solution for transporting large aircraft engines on passenger planes. Since the beginning of 2018, more than 40,000 time critical missions have been accomplished for the automotive and other industries.

“Our expertise in integrated logistics allows us to develop solutions in line with our customers’ growing logistics requirements,” stated Emmanuel Arnaud, GEFCO’s Executive Vice President of Sales and Marketing. ”In the first half of 2018, we continued to diversify our customer base and geographies, achieving a significant increase in sales in Central Europe and the Middle East. GEFCO is on a positive track and we expect to expand our portfolio in North Africa by the end of the year.” 

Strong financial results with improvement in profitability 

 H1 2018 key financials* 

 H1 2018

   H1 2017

Revenues (€ million)

 2,402

 2,262

EBITDA (€ million)  

 165.4

  109.2

Recurring EBIT (€ million)** 

94.9

83.3

* H1 2018 financials are accounted for under new IFRS 16 / H1 2017 not restated for new IFRS 16. 
** Recurring EBIT is measured before non-recurring operating income and expenses. 

In the first half 2018, GEFCO Group achieved a turnover of €2,402 million, up 6.2% compared to the same period in 2017. This increase included 11.6% growth in GEFCO’s Value Key Accounts (international integrated logistics customer portfolios) across the automotive, consumer goods, healthcare and energy sectors. 
EBITDA for the first six months of 2018 amounted to €165.4 million under IFRS 16 . Excluding IFRS 16 impact, EBITDA for the period amounted to €121.9 million, an increase of 11.6% compared to the same period in 2017. 
In the first half of 2018, Recurring EBIT reached €94.9 million over the period under IFRS 161 (excluding IFRS 16, Recurring EBIT reached €93.5 million). 

We are pleased to have achieved strong financial performance in the first half of 2018,” commented Pavel Ilichev, GEFCO’s Executive Vice-President of Finance & Strategy. Our continued improvement in profitability reflects the Group’s commitment to excellence and an ongoing drive to improve operational efficiency throughout the organization.” 

Luc Nadal, Chairman of GEFCO’s Management Board highlights. “Our positive results highlight GEFCO’s capacity to consistently meet the needs of our longstanding customers in the automotive sector, such as Groupe PSA, while continuing to grow and create value in other sectors. Our asset-light business model and robust financial position continue to offer tremendous opportunities to pursue a dynamic and diversified growth strategy.”


Focus on growth through strategic alliances and launch of GEFCO Innovation Factory

In January 2018, the Group successfully launched a new brand signature, “GEFCO. Partners, unlimited”, to engage all stakeholders in its commitment to building long-lasting relationships and creating value. A global advertising, print and digital campaign was created to highlight the Group’s supply chain expertise and commitment to partnerships. 

GEFCO is also paving the way for future growth by engaging with employees to generate new ideas and by building strategic external partnerships to further boost innovation. The Group launched GEFCO Innovation Factory to encourage intrapreneurship, and announced a partnership with Techstars, a world-leading accelerator, to collaborate with start-ups on innovative concepts that will help grow the business. 

GEFCO pursues its strategy of investing in partnerships to support market growth. On July 3rd, the Group signed an agreement with Spanish car importer Bergé to merge the two companies’ Spanish finished vehicle businesses into a new market leader in Spain. “GEFCO has a proven financial and external growth track record and we are well-placed to capitalize on selected growth opportunities” highlighted Luc Nadal Chairman of GEFCO’s Management Board. “Our strategic alliance with Bergé is a great example of how we can create value for our customers and all stakeholders through cooperation.
 

[1] GEFCO opted for an early implementation of IFRS 16 starting January 2018, using the modified retrospective approach, which requires the recognition of the cumulative effect of initially applying IFRS 16, as of January 2018 to the retained earnings and not restate prior years.

Our continued improvement in profitability reflects the Group’s commitment to excellence and an ongoing drive to improve operational efficiency throughout the organization.

Pavel Ilichev

GEFCO’s Executive Vice-President of Finance & Strategy

Press release and press contacts

Pablo Leguay - GEFCO GROUP - Tel: +33(0)1 49 05 28 12 - pablo.leguay@gefco.net
Susan Marro  - GEFCO GROUP - Tel: +33(0)1 49 05 23 12 - susan.marro@gefco.net

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