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 issued early July.
- 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
Revenue for 2020/21 amounted to €1,380 million, down 3.6% on a reported basis. It was 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. Revenue was 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 stable at €41.8 million (-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
The on-and-off closure of bricks-and-mortar stores in 2020 accelerated the demand for omnichannel and e-commerce logistics. FM Logistic now provides omnichannel logistics solutions to 57% of its customers.
Another related driver was the growing need for urban logistics solutions, such as micro-depots, dark stores and bespoke click-and-collect solutions. In these areas, the company has extended its contracts with leading retailers, such as Carrefour, Intermarché and Sephora.
The most notable new contracts awarded in 2020/21 included a global cosmetics and skincare brand, a large toy manufacturer and several leading e-commerce companies, particularly in France, Spain and India. Key contract renewals were signed with Mondelēz and Nestlé.
Revenues were split between France (40%) and other countries (60%), a proportion similar to recent years.
- On a country basis, revenue in France decreased 1.9% to €548 million. Lower volumes in verticals negatively impacted by COVID-19 were mitigated by higher demand in the e-commerce and retail food verticals.
- Revenue and profitability increased in both Spain and Italy, driven by e-commerce logistics. The fastest revenue growth was recorded in Spain (+22%), supported by the continued development of the urban logistics unit Citylogin.
- In the Eastern Europe region, FM Logistic pursued the development of its transport services. In Russia, revenues from transport increased by 20%.
- The Ukraine branch confirmed its return to profit last year, helped by a doubling of e-commerce volumes.
- In Romania, the company secured a 5-year contract renewal with one of the world’s largest food and nutrition companies.
- In the Central Europe region, FM Logistic added 25 new contracts, renewed 29 others and started the construction of a new logistics platform in Wiskitki, 10 km from Poland’s Solidarity Transport Hub (STH/CPK), an international air, rail and road hub project.
- In Asia, the company signed contracts with major e-commerce companies, including one with Pepperfry, India’s no 1 furniture and home products marketplace, and another with VinShop, one of Vietnam’s largest purchasing organisations (a subsidiary of OneMount Group).
- In Brazil, FM Logistic secured a contract with Henkel and its brand Schwarzkopf.
Working towards sustainable supply chains
In fiscal 2020/21, FM Logistic took further steps to contribute to more sustainable supply chains.
Some of the initiatives included:
- The roll-out of a health and safety training campaign across more than 10 countries.
- The provision of sustainability dashboards to 50 customers so they can track so-called ‘scope 3’ GHG emissions associated with the activities outsourced to FM Logistic.
- The shift to renewable electricity for FM Logistic’s warehousing operations in Central Europe, which is noticeable given the dominance of fossil fuels in this region.
- An ongoing project to produce hydrogen from water electrolysis at two pilot logistics facilities in Escrennes, France and Illescas, Spain (projects H2Hub and H2Login).
- The development of its services for retailers and manufacturers selling packaging-free products, as shown by the pilot project carried out at Franprix supermarkets in the Paris area.
Global emissions of carbon dioxide from FM Logistic’s warehousing operations continued to go down. The overall decrease in absolute terms reached 17% between 2018 and 2020.
FM Logistic expects to achieve organic revenue growth in the high-single-digit percentage range in fiscal 2021/22. This is based on the assumption that Covid-19 restrictions will gradually ease and that the Russian ruble exchange rate will average 90 rubles per euro.
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.