LATEST NEWS
26/02/08
Geodis - Significant growth of 2007 results
Strong growth in 2007 results:
- Revenue up 26.4%
- Operating profit up 15.3%
- Net profit attributable o equitty holders of the parent up 11%
43% increase in Divisions’ profit from ordinary activities
Recommended 2007 cash dividend per share of €2.85, up 16%
The Board of Directors of Geodis, chaired by Pierre Blayau, met yesterday to approve the financial statements for the year ended 31 December 2007.
During a period of profound change, Geodis has reported record high revenue and earnings for 2007.*
Revenue was up 5.4% at constant exchange rates and comparable scope of consolidation (like-for-like), with all Business Divisions contributing to growth. Operating profit stood at €122.7 million, despite the €20.7 million in integration costs relating to the Wilson acquisition.
Finance costs and other financial income and expense represented a net expense of €34.7 million, reflecting interests on the Wilson acquisition debt.
Net profit attributable to equity holders of the parent came to €53.7 million, representing an increase of 11% over 2006. The Board of Directors will recommend the payment of a dividend of €2.85 per share, up 16% on the previous year.
* excluding the impact of capital gains recognised in 2004 on the disposal of the Batignolles site.
A) The Group has been profoundly transformed
Geodis’s business model was profoundly transformed in 2007 with the closing of the Wilson acquisition in February and the subsequent implementation of a new organisation built around four Business Divisions. Wilson’s integration was completed after a year-long process, in line with the Group’s timetable and cost expectations, while the new corporate organisation, whose introduction required a certain number of structural adjustments, has been up and running since the second half of the year.
Together, these two processes led to the recognition of €38.4 million in non-ordinary costs. At the same time, the Group continued to scale back on real estate holdings during the year. In all, these non-ordinary factors almost entirely offset one another, so that they had almost no aggregate impact on 2007 operating profit.
B) Divisions’ profit from ordinary activities
Business Division profitability is measured by their profit from ordinary activities, corresponding to operating profit adjusted for gains or losses on property disposals, net restructuring costs, net integration costs, goodwill impairment losses, amortisation of intangibles assets recognised on business combinations and unusual items such as the reimbursement of motorway toll VAT.
• Freight Forwarding
Freight Forwarding revenue doubled during the year, lifted by the integration of Wilson and strong 10.3% growth like-for-like. Profit from ordinary activities improved by €29.3 million to €46.8 million, representing 2.8% of revenue. The initial impact of synergies added roughly €3 million to operating profit.
• Contract Logistics
The start-up of new contracts in the second half helped to drive a 4.4% increase in Contract Logistics revenue for the year. Profit from ordinary activities eased back slightly, to just short of 3% of revenue. It was impacted by volume declines at certain large accounts, contract terminations in late 2006 and early 2007 and the recognition of start-up costs in the second half.
• Groupage (LTL)
Groupage revenue was up 4.6% for the year, reflecting growth in volumes and price increases in France.
Groupage France reported a 7.3% increase in revenue, with profit from ordinary activities reaching 4.3% of revenue despite a rise in operating costs caused by adjustments to the transport plans.
The earnings contribution from the Groupage businesses in other European countries remained negative, although the action plans now underway are expected to drive a gradual performance turnaround in Spain and Italy.
The German Groupage site has been closed. Euromatic’s operations have been integrated into the French Groupage network and should move close to breakeven in 2008.
• Full Truckload
Full Truckload revenue was up 1.2% for the year, while the focus on raising rates and lowering costs led to a significant €4 million improvement in profit from ordinary activities, to 1.5% of revenue.
C) A sound financial position
Net debt was held firm, ending the year at €421.5 million, for gearing of 0.8 at 31 December 2007. The strong earnings for the year, stable working capital and proceeds from the February 2007 capital increase all enabled the Group to maintain a sound financial position.
D) Conclusion
After a transformative 2007, Geodis expects to see further steady growth in revenue and earnings. In expanding markets, Geodis will continue to offer customers around the world a comprehensive range of global, door-to-door solutions that are becoming more competitive and more attractive with every passing year.
The Board of Directors has decided to ask shareholders at the Annual Meeting next 17 April to re-elect Pierre Blayau as Director.
