- 13 April 2018
- Transport / Logistics Services
Global logistics player GEFO’s EBITDA grew by 16% to €201 million on sales that were up 5.1% to €4.4 billion.
GEFCO have said in a trading statement that 2017 was a milestone in its long term improvement strategy. Both Overland and Freight Forwarding businesses returned to profit. The two divisions were underperforming when a new management team came in in 2013 and they improved margins every year since.
One of the core drivers back to profitability has been the €8bn, five year contract with car giant PSA that owns the Opel, Vauxhall, Citroen and Peugeot brands. The contract was renewed at the end of 2016.
GEFCO have expanded its business outside of and beyond PSA. According to the company, a significant proportion of its top line growth came from other automotive giants including Jaguar-Land Rover, Volkswagen, Tesla, Audi, Volvo, Renault-Nissan, and also Carglass and London EV Company.
GEFCO’s is also expanding by moving into adjacent vertical markets, and last year it took its first step into high value modular sub assembly with the capture of a profitable tender for dashboard preparation.
It also increased its business in non-automotive sectors as a result of contract wins with companies such as Amazon, Baron de Rothschild, LC Waikiki, L’Oréal, Gazprom Neft-Supply, Safran, and Procter and Gamble. As a result, non-automotive sales now represent over a third of its non-PSA revenue.
Chairman Luc Nadal said: “Our strategy continues to deliver growth, as demonstrated by an improvement of over 8 per cent year on year in revenue from Market Clients. Our operational excellence programme, commenced in 2014, has made strong progress in turning around the company’s historically loss-making divisions, and reached a milestone in 2017 with both our Overland and Freight Forwarding business returning to profit.”