Geodis has announced improved profits for the first half of 2006 driven by strong French revenuegrowth and the ongoing turnaround of its Italian and British subsidiaries.
The French market leader increased first-half revenue by 7.3% to €1,887 million as a resultof the continued strong growth of international trade flows and of operations in Asia and EasternEurope. Despite an unfavourable business calendar, with two fewer business days, revenue in Franceincreased 5.5% (on a like-for-like basis) to €1,317 million as a result of strong commercialactivity for its groupage and express businesses. No separate figures for express are released.Revenues in the rest of Europe grew 8% to €527 million, and rest of the world revenue was up 35% to€115 million.
Geodis improved its operating profit by 19.1% to €53.1 million, which represents a 2.8%profit margin on revenue. In Europe the operating profit reached breakeven as a result of asignificant reduction of losses in Italy and the United Kingdom. In France, excluding non-recurringfactors such as the beginning of recovery of VAT on tolls and capital gains on disposals, operatingmargin remained stable as a percentage of revenue.
Looking ahead, Geodis said that growth in the second half of 2006 will occur in a lessfavourable comparative context, considering the results achieved in the second half of 2005.Nevertheless, given current economic conditions and the performance of the first half of the year,Geodis should once again deliver increased operating profits in the second half.
