Gefco, the European leader in integrated automotive logistics including Finished Vehicle Logistics (“FVL”) and a top 10 international player in multimodal supply chain solutions recorded revenues of EUR 4.65 billion FY 2018, up +4.6% (+7.9% lfl) compared to FY 2017, 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 EUR 160.3 million, reaching 3.4% margin thanks to the deployment of Gefco’s operational excellence program and the good performance in the four segments, notably FVL.
Revenues from FVL increased by +5.5% (+8.8%) to EUR 1.87 billion, mainly driven by Groupe 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%) to EUR 2.24 billion, 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 EUR 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’s 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 EUR 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.
Gefco renewed a 4-year contract with Opel-Vauxhall in October 2018 for managing all inbound and outbound logistics for the brands in Europe and Turkey. The development of the group was also marked by several major commercial agreements both in automotive and outside automotive across various sectors:
- Gefco continued to develop its inbound and outbound activities in Europe with Renault-Nissan;
- In the UK, Gefco reinforced its successful storage and just-in-sequence operations for tier-one automotive supplier and OEMs in Halewood;
- Gefco won a new contract with Leaseplan to prepare and equip fleet vehicles for one of the world’s largest retailer in the UK;
- The Group also delivered products for Procter & Gamble in Europe and was chosen as the lead logistics provider to design transportation flows for France, Portugal and Morocco for Mecachrome;
- Gefco signed new business with Bosch Powertools for Germany and France;
- Gefco signed an agreement with Europe’s leading airplane manufacturer to launch a multipurpose fleet of reusable packaging;
- Gefco signed a new contract with Cerealto to manage sea shipments between Spain, the United States and Mexico.
Gefco signed a 50/50 joint-venture with Bergé in Spain to create a leading company in the Spanish FVL market. The joint-venture is fully consolidated by Gefco since January 2019. It also acquired GLT, the Europe-Morocco transport specialist.
For the full year 2019, Gefco expects revenue to grow by 4.0% and Recurring EBIT to reach about EUR 200 million. D&A and capital expenditures are expected to be in line with medium term targets and working capital change is expected to be neutral.
