A very solid performance in the first half of 2022 in a turbulent global context
- Growth of 34% in revenues at €6,748 million, at constant exchange rates and scope of consolidation, compared to the first half of 2021
- A sharp rise in EBIT : an improvement of 53% to €309 million compared to the first half of 2021, reflecting the dynamism of the business and strict cost control in an inflationary environment
- GEODIS remains in control of its debt (financial leverage close to 1x )
- GEODIS has exceeded the goals of its Ambition 2023 plan, thereby demonstrating the relevance of its business model
- GEODIS has confirmed its ambition for growth in an uncertain environment
Commenting on the first half results for 2022, Marie-Christine Lombard, CEO of GEODIS, said:
“In a turbulent global context, GEODIS has confirmed its capacity to generate profitable growth. In the first half of 2022, the Group achieved revenues of €6,748 million, an increase of 34% by comparison with the previous year.
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.
I would like to thank our customers for their confidence, and our teams for their ability to implement solutions to deal with the disruptions that have affected the global supply chain.”
The first six months of 2022 reflect the success of GEODIS’s transformation and the relevance of its integrated growth model
• A sharp rise in revenues and profitability
Revenues showed solid growth of 34% at €6,748 million, driven by all activities and in particular by Freight Forwarding.
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.
Contract Logistics continues its rapid development, particularly in the United States, because of the growth in e-Commerce.
The Road Transport Line of Business enjoyed a good level of volumes in France and other countries.
The Distribution & Express Line of Business continues to be driven by the development of e-Commerce in France.
Overall, this dynamic growth resulted in a significant increase in profitability, with EBIT increasing by 52% to €309 million and EBITDA standing at €598 million.
• An ongoing strategy of targeted acquisitions
GEODIS remains committed to building a comprehensive range of services for managing its customers’ flows, with the construction of a global and integrated network of transport and logistics hubs.
In this perspective, the acquisitions in 2021 of PEKAES in Poland and of 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.
GEODIS, fully committed to ESG initiatives
• A greener fleet
With the ambition of achieving a 30% reduction in its CO2 An additional 120 natural gas vehicles have been ordered, bringing the number of trucks ordered powered by bio-CNG (compressed natural gas) for last-mile deliveries in city centers to 320. In addition to a reduction of up to 80% 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.
Meanwhile, GEODIS has teamed up with Renault Trucks to develop a new electric truck specially designed for urban logistics.
• Rail-route solutions
A leading player in multimodal transport, GEODIS continues to expand its network in Europe with a new rail line connecting France and Italy.
• A prize for environmental performance
At the Voluntary Commitments to the Environment Awards 2022, the Group’s Road Transport Line of Business won a trophy for the best progress and was praised by ADEME (the French environmental and energy management agency) for its commitment to reducing its CO2 emissions.
• Changes to the Group’s governance include the appointment of three new members to the Executive Committee: Celeste Thomasson, as the Group’s 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 the Group’s Chief Commercial and Marketing Officer.
GEODIS is focused on maintaining its position in the context of inflation and economic slowdown. The group’s short-term outlook remains positive.
The performance of GEODIS operations is good across all Lines of Business and geographical sectors. Nonetheless, the level of macro-economic uncertainty remains high, with the repercussions of the public health crisis in China, inflationary trends, and significant pressure on maritime capacities, among other phenomena.