FM Logistic reports results for fiscal year 2020/21India
FM Logistic reports results for fiscal year 2020/21
● Comparable revenue growth of 1.5% at constant exchange rates
● Reported revenues of €1,380 million adversely affected by FX effects (€73m)
● Underlying EBIT stable at €41.8 million (-1.6%)
● €207 million in new contracts, compared with €150 million the previous year
● New business driven by demand for omnichannel and urban logistics
● 2021/22 guidance: organic revenue growth in the high single digits
● Continued expansion of warehousing facilities in India to address rising demand for omnichannel services
● Deployed electric vehicles for hyperlocal deliveries in urban areas
1 June 2021 - FM Logistic today published its financial results for the fiscal year ended 31 March 2021. The full audited results will appear in the annual report, which will be released early July.
Revenues for 2020/21 amounted to €1,380 million, down 3.6% on a reported basis. They were affected by the economic downturn caused by Covid-19 in spring 2020 and a negative currency impact of €73 million. These factors were partly offset by a strong business recovery in the second half of the fiscal year. Revenues were up 1.5% on a currency-neutral basis.
Earnings before interest and taxes (EBIT) were €38.8 million, 8.7% lower than last year. The decrease mainly reflects higher costs associated with COVID-19 adaptation measures (€8.1 million), partially offset by cost-savings and cost-passing measures, and FX headwinds of €3 million.
Comparable EBIT was €41.8 million, a decrease of 1.6%.
"In an economy in turmoil, FM Logistic has proved remarkably resilient and relevant. Comparable revenue rose 1.5%. We signed €207 million of new contracts between April 2020 and March 2021, half of which are related to omnichannel and e-commerce. Our employees’ efforts helped millions of consumers get the products they needed. We’ll continue to build on our strong positions in the consumer goods and retail industries to help our customers implement sustainable omnichannel strategies,” said FM Logistic CEO Jean-Christophe Machet.
Growing demand for omnichannel and e-commerce supply chain solutions in India
As with other businesses operating in India, 2020/21 revenues decreased due to Covid-19. However, at the same time, the on-and-off closure of bricks-and-mortar stores in 2020 accelerated the demand for omnichannel and e-commerce logistics. Despite the pandemic, FM Logistic added around 10 Lakh sq. ft. of warehousing space under its operations, a 20% increase in its warehouse footprint. According to Alexandre Amine Soufiani, MD – FM Logistic India, “FM Logistic India is proving its resilience in the face of Covid-19. We are carrying out our plans to expand in India and help our customers develop omnichannel strategies tailored to the Indian market.”
FM Logistic India was awarded new contracts in the FMCG, retail, omni-channel, e-commerce and pharma sectors. The most significant contracts being
● A leading pharmaceutical company has awarded FM Logistic India with a contract to manage the storage and handling of its coronavirus vaccines. FM Logistic India is responsible for the handling, re-packing and storage of approximately 2 Lakh vaccines at a temperature controlled facility.
● A global cosmetics brand has entered into a contract with FM Logistic to manage the in-plant raw material and finished goods warehousing operations at their manufacturing plant in North India. This is a round-the-clock operation to optimise the client’s supply chain.
● Contracts have been entered into with leading retail players to carry out warehousing operations for e-commerce fulfillment at the Multi Client Facility in Bhiwandi.
● On the distribution front, the logistics service provider won several contracts from leading players in the FMCG, industry and pharma sectors.
In India, FM Logistic is focussed on developing Grade A Multi Client Facilities (MCF) in the most important economic zones. By Q2 of 2021-22, the logistics service provider will commence operations at its Grade A Multi Client Facilities in Farrukhnagar (7 lakh sq. ft.) and Bhiwandi (4 lakh sq. ft.). The Farrukhnagar facility is the company’s first own MCF and among the first in India to combine LEED and FM Global certification. Both these facilities are strategically located and furnished with the best-in-class services. FM Logistic has also inked deals with Welspun One Logistics Parks and Lodha Developers to develop Grade A warehousing infrastructure in Bhiwandi and Palava, respectively.
Human Resource Development & Sustainable Initiatives
Training initiatives implemented in India have contributed to halving the employee attrition and occupational accident rates in 2020-21. The number of women employed by FM Logistic in warehouses has doubled. Efforts are consistently being made across all warehouses to ensure that all collaborators have a safe and secure working environment and access to hygienic working conditions. The Group has also ramped up initiatives designed to reduce its environmental footprint. As part of its green distribution offer, FM Logistic India launched its first batch of electric vehicles in Bengaluru. The EVs will be used to carry out intra-city deliveries for WayCool, India’s fastest growing Agri-commerce company and a leading player in the FMCG and Food segment. FM Logistic India will be helping WayCool to carry out hyper local deliveries to local kirana stores, supermarkets as well as end consumers. FM Logistic India plans to deploy more EVs and cover more geographical areas under its green distribution network by this year end.
FM Logistic India plans to expand its operations by another 30 lakh sq. ft. by the end of .2022-23, as announced in 2020. It will be setting up its own warehouses in the major consumption areas of the country like Mumbai, Bengaluru, Hyderabad, Chennai, Delhi. etc. All these upcoming facilities will be developed by NG Concept - FM Logistic’s real estate sister concern.
About FM Logistic
Founded in France in 1967, FM Logistic is an independent, family-owned company that provides omnichannel supply chain solutions to companies in the FMCG, retail, beauty & cosmetics, industrial manufacturing, and healthcare industries. Its services include warehousing, omnichannel fulfilment, co-packing, domestic and international transport, as well as supply chain control tower services. It is active in more than 14 countries across Europe, Asia, and Latin America. The company achieved revenue of €1.38 billion in the fiscal year to March 2021 and has 27,200 FTE employees.
You can follow FM Logistic on Twitter at @FMLogistic and on LinkedIn at https://www.linkedin.com/company/fm-logistic/
About FM Logistic India
FM Logistic in India is one of the key 3PL companies. It has a presence over 50+ locations and manages 5.0+ million ft2 of warehousing space. FM Logistic India provides Warehousing & Distribution Logistics services for the FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma and other sectors. Our 4,000+ Indian employees provide a range of warehousing and distribution services that include Warehousing and Distribution Management, Intra-City deliveries and Value-added services. FM Logistic India has an extremely strong client base that includes several blue-chip Indian and multi-national corporations. The company is the recipient of several Logistics and Supply Chain Management awards that bear testament to the quality and focus that it brings to its customers. Its vision is to be recognized as the most dependable and responsive logistics service provider. For more information, please visit: http://www.fmlogistic.in. You can follow FM Logistic India on LinkedIn at #fmlogisticindia
Assistant Manager - Branding & Corporate Communications
FM Logistic India
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