GEFCO Group, a global player in industrial logistics and the European leader in automotive logistics, has announced that it generated a turnover of €4.2 billion ($4.69 billion) in 2016.
Luc Nadal, Chairman of the Management Board of GEFCO Group, said: “2016 has been an excellent year for GEFCO Group, and the results confirm our strategic choices in terms of commercial focus and GEFCO’s operational excellence. These results reflect our ability to add value at each stage of our industrial customers’ supply chain, enhancing their competitiveness. Furthermore, having redefined our market offer we have had the pleasure of expanding our industrial footprint with new customers, while strengthening partnerships with our historical customers.”
Confirmed operational and financial performance
2015 2016 Var. 2016/2015
Turnover (€ billions) 4,174 4,228 + 1.3%
EBITDA (€ millions) 130.8 172.8 + 32.1%
In 2016, GEFCO group’s turnover exceeded €4.2 billion, representing an increase of 1.3% compared to the same period in 2015.
This growth has been driven by the good performance of the European car market and a strong focus on strategic customers.
EBITDA amounted to € 172.8 million, representing an increase of 32.1% compared to 2015. This significant improvement in profitability is the result of the Group’s proactive policy to optimise purchases and continue to reduce its fixed costs. This is in line with the performance plan initiated in mid-2014 in favour of greater cost flexibility and an asset-light business model.
The key factors in this growth are centered on developments in GEFCO’s business strategy, focusing on flexibility in costs and operational excellence, as well as an enhanced investment policy. This approach, coupled with the involvement and the performance of the commercial teams, strengthened the Group’s position as one of the top ten European logistics integrators and its global leadership in finished vehicle logistics (FVL).
Diversification as a catalyst for growth
The results reflect the relevance of the Group’s diversification strategy, as well as the expertise of its implementation.
Created to meet the logistics challenges of the automotive industry, GEFCO is the logistics partner of some of the world’s leading industrial manufacturers and suppliers managing and optimising their complex supply chains. The new agreements signed in 2016 with Renault Nissan, VWG Audi, TOYOTA, BMW and Talgo illustrate, again, the Group’s ability to offer innovative, competitive and efficient logistics solutions for their respective industries.
The €8 billion exclusivity agreement signed with PSA Group to support its global strategic ambition through the optimisation of its global supply chain for over five years, is a new sign of trust for GEFCO and the performance of its services. This agreement concerns the development and implementation of global logistics and transport solutions for the three PSA Group brands: Peugeot, Citroën and DS. It includes the management and optimisation of the entire supply chain, from sourcing components for production and assembly plants to distributing finished vehicles and spare parts.
In line with its diversification strategy, in 2016 GEFCO signed new contracts with customers involved in various sectors such as High Tech and Home Equipment (Whirlpool, TPV Technology), and Marketline Life Science & Healthcare (Zentiva, Artsen Zonder Grenzen (Médecins Sans Frontière), Netherlands, CEVA Santé Animale Romania).
With an international network, covering 300 locations, GEFCO offers customised logistics solutions to support the development of its international customers.
In 2016, the successful integration of IJS Global, a Dutch company specialising in Freight Forwarding, enhanced GEFCO’s presence worldwide as well as its offer in the world’s largest Freight Forwarding areas in China, South Asia and Australia, in addition to the USA.
The acquisition of IJS Global enabled the Group to increase the number of its subsidiaries to 45 and to provide its industrial customers with a global logistics offer across the five continents. Furthermore, as the Dutch company is specialised in the transport of pharmaceutical, high-tech, and aerospace products, this acquisition also accelerated the diversification of GEFCO’s customer portfolio.
Luc Nadal concluded: “In 2016, strategic new customers chose to work with GEFCO Group, which demonstrates our attractiveness and our expertise in optimising complex supply chains on a global scale. In 2017, our aim is to grow our Finished Vehicles Logistics business while continuing to develop the Overland, Warehousing and Reusable Packaging, Freight Forwarding and Fourth Party Logistics expertise by testing new technologies and concluding new partnerships.”