GEFCO confirms its momentum with +9% like-for-like revenue growth in Q1 2019

13 May 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 today released its consolidated revenue figures for the first quarter of the year ended 31 March 2019.

  • Revenues increased by +7.8% (+9.0% like-for-like, “lfl”) for the first quarter of the year ended 31 March 2019 compared to the same period in 2018.
  • Sales from Market Clients (excluding historical customers Groupe PSA and Opel Vauxhall) rose by +13.1%.
  • The new BERGÉ-GEFCO joint venture demonstrated strong performance, in line with expectations.
  • GEFCO confirms its financial targets for the full-year 2019 and for its 2020-2021 guidance

 

Financial performance - unaudited

Consolidated revenues reached €1,239.2 million for Q1 2019, representing an increase of +7.8% compared to Q1 2018. Adjusted for foreign exchange and acquisition-led growth, revenues rose by +9.0% (with a 0.8% positive impact coming from the acquisition of GLT and a -1.9% negative currency effect).

The growth in revenue was underpinned by several factors:

  • Good performance with Groupe PSA, mainly in Europe and especially with Opel Vauxhall, following a newly renegotiated contract, started on 1st January 2019.
  • A +13.1% increase in Market Clients’ sales compared to Q1 2018, with a strong performance in FVL and OVL & Contract Logistics. Adjusted for foreign exchange and acquisition-led growth, Market Clients sales grew by +14.5% (with a 1.7% positive impact coming from the acquisition of GLT and a -3.1% negative currency effect). Market Clients sales also benefited from BERGÉ’s contribution to the new BERGÉ-GEFCO joint venture which was launched on 1st January 2019.
  • In Q1 2019, Market Clients accounted for 46.5% of Group’s total revenues (up from 44.4% for Q1 2018)
  • However, lower volumes were recorded in Q1 2019 by GEFCO’s Air & Sea segment compared to Q1 2018

GEFCO also recorded a strong increase in recurring EBIT and improvement in margins in Q1 2019 compared to Q1 2018 mainly due to (i) the newly renegotiated contract with Opel-Vauxhall (ii) the BERGÉ-GEFCO joint venture contribution and synergies and (iii) the continued focus on operating excellence throughout the organization.

Luc Nadal, Chairman of the Management Board of GEFCO, commented:I am very pleased with our Q1 performance. We continue to outperform our underlying market. We keep creating value for Groupe PSA, achieving very positive results in the first three months of our newly renegotiated contract with Opel Vauxhall. Market Clients sales kept growing steadily, particularly within Finished Vehicles Logistics and Overland & Contract Logistics. The new BERGÉ-GEFCO joint venture in Spain has got off to an excellent start. All in all, I remain very confident that we will achieve our operational and financial targets for the full-year 2019 and our 2020-2021 guidance.”

 

Commercial development remains strong

GEFCO’s commercial development was robust in Q1 2019. Indeed, the Group won several new major contracts, while renewing its business with a number of tier-one auto and non-auto customers around the world.

  • In FVL, GEFCO started distributing Tesla’s new Model 3 in France, Belgium and the Netherlands, in addition to Switzerland. GEFCO also began distributing Volvo Cars in France and from the carmaker’s new factory in Luqiao, China.
  • In Overland & Contract Logistics, GEFCO is now distributing BOSCH Power Tools in France for the retail market. The Group has also extended its contract with ArcelorMittal Gonvarri in Slovakia
  • GEFCO’s Air & Sea division began a partnership with British Petroleum (BP) for multimodal transport to CIS countries. The Group has also extended its contract with ESKA Packaging Netherlands for Air and Sea services.
Our focus on managing excellence throughout the organization continues to drive robust commercial and financial results. Our strategy through external growth and partnerships also contributes positively to our consolidated financial results and fully meet our growth ambitions. GEFCO’s healthy financial situation will allow us to pursue additional growth opportunities in the near future.

Pavel Ilichev

Executive Vice President Finance & Strategy

M&A and Alliances

The BERGÉ-GEFCO joint venture in Spain is performing in line with management expectations and the synergies produced by the integration process are contributing positively to both revenues and profitability of the Group. The commercial development is strong with existing and new customers. For example, BERGÉ-GEFCO has recently been awarded a six-year contract extension with a major German OEM.          

Innovation

GEFCO continues to nurture innovation through three main axes: digitalisation with for instance its Moveecar service that allows a customer to organise door-to-door transport of a single car; asset and flow optimisation through track & trace or high precision localisation devices; and, production centres 4.0, looking at new technologies on GEFCO’s compounds and warehouses.

The partnership with Techstars, an international accelerator, is also driving excellence within the organization. GEFCO has partnered with two disruptive players to address GEFCO’s innovation priorities and also help GEFCO accelerate its own internal innovation factory.

Outlook

Our good commercial momentum comforts our ability to achieve GEFCO’s targets for 2019 and for the 2020-2021 period which were already confirmed in the full year 2018 press release, on 29 April 2019.

Press release & financial contacts

GEFCO - Cédrik Gallien - cedrik.gallien@ gefco.net - +33(0)149 05 23 91
NewCap Investor relations - Emmanuel Huynh - gefco@ newcap.eu - +33 (0)1 44 71 94 99    
NewCap Media relations - Nicolas Merigeau - gefco@ newcap.eu - +33 (0)1 44 71 94 98

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