Commenting on the annual results for 2022, Marie-Christine Lombard, Chief Executive Officer of de GEODIS, said:
“In 2022, GEODIS achieved a record level of performance for the third year in a row. These excellent results in a challenging economic and geopolitical environment stem from the expertise of our teams, the complementary nature of our various businesses and our ambitious development strategy. I am particularly proud of the work accomplished by the Group’s 49,400 employees, and I would like to thank them for their unfailing commitment.
“Although uncertainties remain in 2023, we remain confident in GEODIS’s growth prospects. Thanks to the diversity of our businesses and geographies and to our operational agility, we are looking forward to 2023 with determination. We will continue to pursue our growth dynamic in the service of our customers, the digitalization of our businesses and the implementation of our environmental commitments, which remain one of our key priorities.”
A performance that confirms the Group’s strategic choices
• Sharp increase in revenues and profitability
GEODIS reported revenues of €13.7 billion in 2022, 19% higher than in 2021. This performance was driven by sustained activity across all the Group’s Lines of Business and demonstrated the relevance of its business model.
The Freight Forwarding Line of Business benefited from a favorable market environment, as freight rates remained high in both air and marine transport. Nonetheless, the fourth quarter of 2022 marked the end of the price boom caused by the pandemic. Even so, prices remain highly volatile.
The Contract Logistics Line of Business saw a sharp rise in revenues in the United States as a result of business development and growth in volumes of existing customers. Business in Europe also continued to grow, despite an underlying decline in consumption in an inflationary environment as of the second semester.
The Distribution & Express Line of Business managed to increase its volumes and its result by comparison with 2021 in spite of increased production costs owing to inflation.
The Road Transport Line of Business again enjoyed a high level of growth, largely because of increased business in southern and eastern Europe.
Overall, this performance resulted in a significant increase in profitability, with EBIT increasing by 10% to €518 million and EBITDA3 standing at €1,163 million.
• Growth boosted by strategic investments
In line with its “Ambition 2023” plan, GEODIS carried out further investments to strengthen its positions in core geographical zones and to expand its service offerings in certain Lines of Business. The Group has consolidated its integrated network of transport and logistics platforms on a worldwide scale.
In 2022, GEODIS carried out several targeted acquisitions:
- Acquisition of Keppel Logistics, which has warehousing capacity in Singapore. This operation strengthens the Group’s Contract Logistics and e-Commerce services in Asia-Pacific.
- Acquisition of Need It Now Delivers in the United States, which operates an excellent domestic freight network. Thanks to this acquisition, GEODIS has extended its presence in this strategic area, increased its capabilities in contract logistics and in urban logistics.
- Proposed acquisition of trans-o-flex, a specialist in the controlled-temperature transportation of pharmaceutical products and a leading player in the premium express transport sector in Germany. This acquisition will establish GEODIS as one of the most prominent players in the key market of healthcare and will significantly enhance its delivery capabilities in Europe. Completion of this transaction is scheduled for the first quarter of 2023.
An increasing number of decarbonization initiatives to ensure responsible growth.
At GEODIS, growth is based not only on economic performance but also on the ability to control and reduce the environmental impact of its activities.
In 2022, GEODIS increased initiatives to reduce carbon emissions across all of its Lines of Business.
• Greener fleets for road transport
GEODIS is accelerating the greening of its fleets with investments in low-carbon technologies. 420 biogas or electric vehicles are currently scheduled for delivery. These vehicles will enable low-carbon solutions to be employed for last-mile deliveries in the city centers of the 40 largest metropolitan areas in France by 2024.
GEODIS has also signed a partnership agreement with Renault Trucks to develop electric 16-tonne trucks designed specifically for urban logistics.
• Acceleration of multimodal shipping
GEODIS is pressing ahead with the development of rail-road solutions, particularly to destinations in Italy, bringing the number of trains running on the European rail network to over 100 per week.
• Development of an offer of alternative fuels for ocean and air freight
GEODIS offers its customers the option of using sustainable fuel, which results in reductions in greenhouse gas emissions of up to 90% for ocean and air freight. The biofuel used for aviation is processed from biomass (Sustainable Aviation Fuel), while the alternative fuel used for marine freight is mostly produced from recycled oils (Sustainable Marine Fuel).
A solid outlook in an uncertain environment
Although the current macro-economic environment is uncertain, GEODIS’s growth prospects remain solid thanks to the diversity of its business portfolio and geographic locations.
In the future, the Group intends to pursue its development and capture new markets by accelerating its digital transformation, while enriching its portfolio of new offerings for its customers in all parts of the world.
1 On a like-for-like basis; the reference to 2019 is provided to allow comparison with a normal year unaffected by Covid.
2 Earnings before interest and taxes.
3 Earnings before interest, taxes, depreciation and amortization.