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34% revenue growth to €6.75 billion (US$6.91 billion) in first half of 2022
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53% rise in EBIT to €309 million reflects dynamism and strict cost control
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GEODIS remains in control of its debt with financial leverage close to 1x
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The company has exceeded the goals of its Ambition 2023 plan, demonstrating the relevance of its business model
GEODIS closed the first half of 2022 with solid results, defying global turbulence.
The French logistics group reported a sharp rise in revenues and profitability, with revenues growing 34% at €6.75 billion (US$6.91 billion), driven by all activities and, in particular, freight forwarding.
“In a turbulent global context, GEODIS has confirmed its capacity to generate profitable growth. In the first half, the group achieved revenues of €6,748 million, an increase of 34% year on year,” said GEODIS chief executive Marie-Christine Lombard in a statement on July 28.
“This sustained increase was achieved in a context of extreme tension in maritime and air transport, reflected in high freight rates and shrinking market volumes. In this context, GEODIS continues to grow and gain market share.”
He said contract logistics continued its rapid development, particularly in the United States, because of the growth in e-commerce while the road transport line of business enjoyed a good level of volumes in France and other countries.
The distribution & express division was driven by e-commerce development in France.
This dynamic growth led to a significant increase in profitability, with earnings before interest and tax (EBIT) rising 52% to €309 million and earnings before interest, tax and debt amortization (EBITDA) at €598 million.
“These good results demonstrate the relevance of our growth model and allow us to press ahead with our strategy of targeted acquisitions as we seek to build a global, integrated network of transport and logistics hubs,” said Lombard.
The acquisitions in 2021 of PEKAES in Poland and Gandon Transports and Transports Perrier in France have been followed by that of Keppel Logistics, which will strengthen GEODIS’s presence in the contract logistics sector in Asia-Pacific, more particularly in Singapore.
RELATED READ: GEODIS acquires Keppel Logistics
GEODIS said it is fully committed to environmental, social, and governance initiatives, as follows:
- With a goal of achieving a 30% reduction in its carbon footprint, GEODIS has ordered an additional 120 natural gas vehicles, bringing to 320 the number of trucks powered by bio-CNG it ordered for last-mile deliveries in city centers. In addition to up to an 80% cut in CO2 emissions compared to a Euro VI-E diesel vehicle, emissions of both particulates and nitrogen dioxide (NO2) are as much as 85% lower.
- GEODIS continues to expand its network in Europe with a new rail line connecting France and Italy.
- At the Voluntary Commitments to the Environment Awards 2022, the group’s road transport business won a trophy for the best progress for its commitment to reducing its CO2emissions.
- Three new members of the Executive Committee: Celeste Thomasson, as general counsel with responsibility for legal affairs, insurance, compliance and audit; Pascale Dubois, as executive vice president, group communications and brand; and Laurent Melaine, as chief commercial and marketing officer.
GEODIS said it is focused on maintaining its position in the context of inflation and economic slowdown. The group’s short-term outlook remains positive.
