FM Logistic reports revenue of 1.43 billion euro, up 8.7%

FM Logistic, a leading provider of logistics and transportation services posted revenues of 1.43 billion euro (Rs 11,822 crore) in FY2019-20, up 8.7 percent from a year earlier (8% excluding FX effects). The earnings before interest and taxes (EBIT) came at 42.5 million euro (Rs 351 crore), up 21 percent YoY. The company says the results reflect its focus on growing more selectively and profitably, along with a strong focus on customer relationships and improved operational performance.

Commenting on the result Jean-Christophe Machet, CEO, FM Logistic said: “FM Logistic again achieved a strong performance in FY2019-20. The 21 percent 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 percent revenue decrease compared with the previous year and a significant increase in operational costs related to anti Covid-19 prevention measures.”

“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,” added Machet.

The company revenues were well distributed across geographies, with France representing 38 percent and other countries 62 percent. In addition, FM Logistic says it continues to build its presence in emerging markets. It opened new multi-client warehouses and distribution centres in India and Vietnam to meet the long-term demand for higher end supply chain services and facilities.

The company says it maintained commercial momentum in the fiscal year by signing new contracts worth more than 150 million euro (Rs 1,240 crore). Sales growth was especially strong in the cosmetics/beauty (+20%) and e-commerce logistics sectors, particularly in France, Spain, India and Russia. In the latter country, e-commerce volumes handled by FM Logistic rose 32 percent in 2019 from the previous year.