French transport group Geodis achieved a financial turnaround in 2010 and generated a strongrevenue increase thanks to acquisitions and organic growth.
The company, now owned by rail operator SNCF, increased revenue by 31% to €6.6 billion, withorganic growth of 11.6% excluding acquisitions and exchange rate effects.
Its operating profit improved from a €40 million deficit in 2009 to a €35 million profit lastyear due to business growth and cost-cutting.
All the divisions contributed to revenue growth, especially the freight forwarding division.This grew by 50% in revenue terms and now accounts for 36% of Geodis revenues. Its increase can beattributed to higher freight prices and a recovery in volumes of air freight (+40%) and sea freight(+22%), especially between Asia and Europe.
The Groupage & Express division, based around French express operator Calberson, accountedfor 25% of revenues (approx. €1.85 billion), ahead of contract logistics (15%), supply chain (13%)and road transport (11%). For the first time, in 2010 more than 50% of the group’s revenue wasgenerated outside France.
The integration of the acquisitions made in 2009 and 2010 is proceeding according to plan,according to the company. These include IBM Global Logistics into the group as a whole, Cooljet andCiblex into the Groupage & Express Division, Giraud into the Road Division, Sealogis and STSIinto the Freight Forwarding Division, and Chevallier and Bertola into the Contract LogisticsDivision.
In addition to acquisitions, in 2010 the Geodis group invested more than €120 million to supportsales growth, expand and improve facilities and upgrade IT systems, especially at the Groupage& Express and Freight Forwarding Divisions.
Looking ahead, Geodis said that it aims to increase sales and market share as well as improveprofitability in 2011 despite “a tough economic environment where pressure on prices will remainstrong”.
