Increase in all financial indicators
– Revenue: +10.3% to EUR 1.28 billion
– Underlying EBITDA: +17.5% to €192.4m
– Underlying operating income: +13.5% to €47.9 million (+10 bps)
– Operating cash flow: +33.9% to €147.6m after taking operating investments into account
– Finalising the acquisition of Spedimex, opening the first branch in the UK and accelerating commercial synergies.
ID Logistics presents its financial results for the first half of 2023. During the period, the company reported revenue growth of 10.3% to €1.28 billion and underlying EBITDA growth of 17.5% to €192.4 million.
Eric Hémar, president and CEO of ID Logistics, comments: “The first half of 2023 was rewarding for ID Logistics, once again the Group demonstrated its ability to continue profitable growth. The company has completed the acquisition of Spedimex, an operation already promising in terms of commercial synergies and the acquisition of new customers: the Group has thus become the first contract logistics provider in Poland, a market with strong growth. ID Logistics has expanded its operations to the 18th country, the UK. The company has also developed partnerships with major blue chip companies, especially in the e-commerce and fashion industries, in the US and Europe, which will enable it to accelerate growth from the second half of 2023.”
REVENUE UP 10.3% (4.3% LIKE-FOR-LIKE)
In the first half of the year, ID Logistics generated revenues of €1.288bn, which translates into a 10.3% increase and a 4.3% like-for-like increase, compared to the same period last year. The company’s revenues had already increased by 15.3% compared to the previous six months.
– In the international markets, ID Logistics reported revenue growth of 17.7% to €877.3 million. This result includes the three-month revenue of Kane Logistics, consolidated from 1 April 2022. , and the monthly revenue of Spedimex, acquired and consolidated from 1 June 2023. Adjusted for changes in the scope of consolidation and taking into account the generally unfavourable impact of exchange rates, the increase was 8.3% compared to the first half of last year, when revenues increased by 21.9%.
– In France (the Group’s home market), revenues amounted to €411.3 million (-2.7%), driven by a decline in demand for both food and industrial goods.
BASE EBIDTA GROWS BY 17.5%
In the first half of the year, the Group continued to work on improving operating profitability, with underlying EBITDA increasing by 17.5% to €192.4 million. The underlying EBITDA margin increased by 90 bps to 14.9%:
– In international markets, underlying EBITDA increased by EUR 27.5 million to EUR 130.7 million.
– The underlying EBITDA margin increased by 120 bps to 14.9%, mainly due to productivity gains on projects started in 2021 and early 2022 and cost control on projects started in late 2022 and 2023, including start-up costs in the UK.
– In France, underlying EBITDA remained stable at €61.6 million. Good management of variable costs, aimed at adjusting to lower revenues, enabled the underlying EBITDA margin to increase by 50 basis points to 15%.
13.5% INCREASE IN UNDERLYING OPERATING INCOME
Underlying operating income before exceptional factors increased by 13.5% to €47.9 million. After taking into account depreciation and amortisation related to resources used to manage increasingly technical operations, operating profit before exceptional factors increased by 13.5% to €47.9 million. Operating margin before non-recurring items increased by 10 basis points to 3.7%, including a decrease of 10 bps to 3.9% in France and an increase of 20 bps to 3.6% for international operations. The group notes that its operations traditionally show more favourable profitability in the second half of the year.
GROUP SHARE OF NET INCOME AT €16.4M
The Group’s share of net income was €16.4m, a slight decrease of €1.9m compared to H1 2022. The result includes net financing costs of €11.9m, up €7.6m compared to H1 2022. This is related to the acquisition of Kane Logistics (financing the acquisition and operations for 6 months in 2023 instead of 3 months in 2022). Other finance costs (€9.7m) result from the discounting of rental debt under IFRS 16, which increases as the Group grows.
33.9% INCREASE IN CASH GENERATION FROM OPERATIONS
The Group’s operations generated €147.6 million in cash, an increase of 33.9% over last year, after taking into account operating investments. Investments of €31.8 million are higher than in the first half of last year, 80% of which relate to the start-up of new sites.
In the first half of the year, ID Logistics finalised the acquisition of Spedimex, paid partly in cash for a net amount of €15.6 million, and made a payment of €6.7 million to the selling companies of Colisweb. As a reminder, the acquisitions of Colisweb in France and Kane Logistics in the US were finalised in early 2022 for a total of €247.7 million, including acquisition costs.
PROSPECTS FOR BUSINESS DEVELOPMENT
In the near term, the Group’s focus will be on the success of new projects concluded with blue chip companies and aligning costs with customer volumes.
Over the past two years, ID Logistics has significantly diversified its business in terms of both geographic coverage and customer sector, giving the company a more global approach to the market. In addition, the company’s ability to support key global customer groups has already translated into a significant expansion of its commercial offering, which will ensure further business growth.
