FM Logistic reports financial results for FY 2019/20Romania
● Revenue up 8,7 % to €1,43 billion, an entirely organic growth
● EBIT up 21 % to €42,5 million
● Limited impact of Covid-19 on the fiscal year ended on 31 March 2020
● €150 million in new contracts, notably in the e-commerce logistics and cosmetics/beauty sectors
● Little visibility for 2020/21, but underlying fundamentals remain strong
FM Logistic has published its results for the fiscal year 2019/20 ended on 31 March 2020. The company will publish its detailed annual report on the 10th of July when it holds its AGM.
FM Logistic posted revenues of €1.43 billion for the fiscal year 2019/20, up 8.7% from a year earlier (8% excluding FX effects). Earnings before interest and taxes (EBIT) were €42.5 million, up 21% compared with the previous year. These results reflect the company’s focus on growing more selectively and profitably, thanks to strong customer relationships and improved operational performance.
Jean-Christophe Machet, CEO of FM Logistic: “FM Logistic again achieved a strong performance in 2019/20. The 21% EBIT growth confirms the positive impact of our Focus programme. Revenue growth was entirely organic, supported by strong sales execution and the introduction of new services, particularly in the omnichannel and urban logistics areas. The Covid-19 outbreak had a limited impact on the financial year ended in March 2020. However, the start to the new fiscal year has been more challenging. In April and May 2020, we saw an overall 9% revenue decrease compared with the previous year and a significant increase in operational costs related to anti Covid-19 prevention measures. We continue to take action to protect our employees, serve our customers’ needs and strengthen our balance sheet. Almost all our sites are operational. Most importantly, we have some substantial strengths, namely a sound financial situation, a balanced customer portfolio of food and non-food FMCG companies and retailers, our e-logistics ability, a mostly domestic activity and a stable family shareholding structure. Supply chain services help meet the essential needs of the populations and businesses. All these give us confidence in our ability to get through this unusual period.”
FM Logistic maintained commercial momentum in 2019/20 by signing new contracts worth more than €150 million. Sales growth was especially strong in the cosmetics/beauty (+20%) and e-commerce logistics sectors, particularly in France, Spain, India and Russia. Revenue growth was also supported by the introduction of new services meeting consumer trends, such as the rise in e-commerce and sustainability.
Transport revenue exceeded €500 million (36% of the total). It benefited from the expansion of less-than-truckload (LTL) as well as urban logistics services.
In 2019/20, FM Logistic took additional steps to contribute to a more sustainable supply chain. These included a work safety programme in all 14 countries where it operates, the joint development, together with the French engineering school UTC, of an ergoskeleton designed for warehouse pickers, the provision of customer-specific information about the environmental and social impact of the services FM Logistic provides and the start of a zero waste project. Thanks to these efforts, FM Logistic received the EcoVadis Gold rating, placing it in the top 5% of companies for corporate social responsibility (CSR) performance.
FM LOGISTIC IN ROMANIA
In 2019/20, FM Logistic posted revenues of €29.8 million in Romania. Business activity was focused on increase of fulfillment rate of our own multi-client warehouse surface (100.000 sqm) and extension of collaboration with the existing clients by providing fully integrated supply chain services including Warehousing, Co-packing and Distribution. Business growth was supported by the signature of several contracts with new clients from FMCG and Retail industries. FM Logistic has carried on its strategy of expanding its service offer. Alexander Pavlov, Country Managing Director: “FM Logistic is developing its 3E (easy to start, easy to use, easy to exit) service in Romania to offer customers standardised logistics services at competitive rates. This service should prove very successful in this country, because it meets the needs of SMEs that have not previously outsourced their logistics.
We’ve also expanded two other services: the LTL service, which helps companies optimise their transport costs and increase delivery frequency to retailers, and the automation of the labelling process, saving time and money.” Eco-friendly measures introduced by FM Logistic in Romania include the reduction of single-use consumables in warehouses and the elimination of plastic cups in offices. This means 300 fewer plastic cups per day. To further improve customer service, the company operates two logistics platforms very close to Bucharest ( Dragomirești and Petrești ) and one near Timișoara ( Dudestii Noi ), as well as two cross-docking sites ( Cluj and Bacău).