ID Logistics: further brisk growth in Q2 2017

Regulatory News:

ID Logistics (Paris:IDL) (ISIN: FR0010929125, Ticker: IDL), one of the European leaders in contract logistics, has reported H1 2017 revenues of €658 million, up +42.8% and up +12.6% on a like-for-like basis (at comparable scope and exchange rates).

Eric Hémar, Chairman and CEO of ID Logistics, commented: "The healthy business trends we recorded at the beginning of the year continued, driving an historically high level of first-half revenue growth – an organic increase of +12.6% – notably fuelled by the ramp-up in the numerous new contracts we won in 2016. Also, we have enjoyed the benefit of positive price-volume effects in a more supportive environment over the past few months. Finally, the Group benefits from the contribution of Logiters, acquired in September 2016, and whose operational integration has been completed.”

* at comparable scope and exchange rates

FURTHER BRISK GROWTH IN Q2 2017

In the second quarter of the current financial year, ID Logistics again delivered brisk growth running at +12.4% on a like-for-like basis (+12.9% in the first quarter). As a result, ID Logistics’ H1 2017 revenues totalled €658 million, up +42.8% and up +12.6% on a like-for-like basis.

The full-year impact of the new contracts that started up in 2016 and mildly positive price/volume effects overall accounted for the vast bulk of this growth, both in France and in international markets. Also, since the beginning of the year, ID Logistics’ performance has been boosted by positive currency effects, and the integration of Logiters, acquired in September 2016, has hit the Group’s targets.

In France, ID Logistics’ revenues totalled €309.6 million, an organic growth of +11.5%. This growth was driven chiefly by the impact of the new business that started up in 2016, with the pace of 2017 start-ups more in line with that seen in previous years.

In International markets, first-half revenues came to €348.7 million, up +90.2% and up +14.2% on a like-for-like basis. As in France, most of this growth came from the full-year impact of the new business won in 2016. In addition, international business was buoyed by the integration of Logiters from 1 September 2016 and positive currency effects, including from the Brazilian real and the South African rand.

NEW BUSINESS

Commercial activity remained very brisk with a flurry of competitive tenders in retail order fulfilment for e-commerce or picking detail. For example, ID Logistics won the following contracts:

• In France, ID Logistics continues to support Cdiscount’s expansion with the opening of a third 60,000m² platform in Réau (south of Paris), thus establishing the Group as a leading logistics partner for e-commerce companies in France.
• In the Netherlands, ID Logistics clinched a new contract with Makro, the Metro group’s Dutch subsidiary. On a platform of around 20,000m² backed up by the roll-out of a transport control tower for product distribution, ID Logistics is set to serve 17 Makro cash units in the Netherlands from September 2017.
• In Russia, the Group maintained its healthy growth momentum, starting up a 5-year partnership agreement with Azbuka Vkusa, a high-end retail banner. ID Logistics is set to handle deliveries to a hundred or so stores in Moscow and St Petersburg from a fresh produce warehouse with 10,000m² in space initially.

AWARD RECEIVED IN THE FIRST HALF

In June, ID Logistics gained HappyAtWork 2017 accreditation in the category of businesses with over 1,000 employees. This is the first participation-based employer certification programme recognising excellence in management and employee motivation based on the following six criteria – professional development, stimulating environment, management and motivation, salary and rewards, and, lastly, pride and pleasure. Following the participation-based survey of its employees, the Group scored 16.44 out of a possible 20, putting it on the podium in third place out of over 5,000 businesses in France rated by their employees.

OUTLOOK

During the first half, ID Logistics focused on completing the integration of Logiters and raising the productivity of the very large number of facilities started in 2016 in order to boost its profitability from the second half of 2017.

What’s more, ID Logistics continues to rise to help meet the new challenges facing its clients. By doing so, it aims to deliver further growth outpacing that in the broader market and to consider acquisition opportunities, especially in northern Europe, to provide its clients with broader geographical coverage.

NEXT REPORT

Publication of first-half results on Wednesday, 30 August 2017 after the market close.

ABOUT ID LOGISTICS

ID Logistics is an international contract logistics group, with revenue of €1,070 million in 2016. After the Logiters acquisition, ID Logistics has more than 275 sites across 16 countries, representing close to 5 million square meters of warehousing facilities in Europe, Latin America, Asia and Africa, and 18,500 employees. With a client portfolio balanced between retail, industry, detail picking and e-commerce sectors, ID Logistics delivers high-tech solutions and is firmly committed to sustainable development. ID Logistics is listed on Compartment B of NYSE Euronext's regulated market in Paris (ISIN Code: FR0010929125). The Group is managed by Eric Hémar.

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