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.
SOURCE: GEFCO
