FM Logistic reports results for fiscal year 2018-19Group
9th july 2019 r. FM Logistic today reported its financial results for the fiscal year 2018-19 ended on March 31, 2019. It will publish its detailed, audited Annual Report on July 15, 2019
immediately following its AGM.
FM Logistic reported revenues of €1,318 million in the year ending March 2019, up 11.8% year-on-year, and earnings before interest and taxes (EBIT) of €35.1 million, up 32% from last fiscal year’s€26.5 million. Adjusted for currency effects, revenue growth was 15%. The EBIT improvement was
driven by measures taken by the company to increase its operational efficiency and be more selective in its commercial approach.
„FM Logistic delivered a solid performance in fiscal 2018-19 with a double-digit growth in revenues
and EBIT”- said Jean-Christophe Machet, FM Logistic CEO.-“Revenue growth was exclusively organic, a sign of customer confidence. The profitability improvement reflects the first results of our Focus plan. Initiated in 2017, this plan has four objectives: set the right prices for our services, increase operational efficiency, develop human resources and be more selective from a commercial standpoint. These results lend further credibility to our business model as an independent and family owned company.”
FM Logistic took advantage of the sustained demand for logistics services in Europe and Asia, which was propelled by omnichannel distribution and e-commerce. FM Logistic won €190 million worth of new contracts during fiscal 2018-19, notably from companies in the FMCG, retail, perfume and cosmetics sectors.
FM Logistic took advantage of the sustained demand for logistics services in Europe and Asia, which
was propelled by omnichannel distribution and e-commerce. FM Logistic won €190 million worth of
new contracts during fiscal 2018-19, notably from companies in the FMCG, retail, perfume and
FM Logistic’s transport business achieved a revenue growth of 17% (at constant FX), helped by the
performance of its Citylogin urban logistics service. Citylogin has gained traction with large ecommerce
and retail companies.
FM Logistic continued to expand its international presence across Europe during FY 2018-19 with the
opening or expansion of several logistics platforms in Russia, Poland, the Czech Republic, Romania,
Spain and Italy. Construction is underway on new logistics platforms in India and Vietnam. Countries
outside the French market now account for 61% of FM Logistic’s revenues.
"Gross domestic product in the Central European markets continues to grow. FM Logistic has perfectly responded to these positive impulses and strengthened its position in the region, enjoying the high regard of its customers and receiving industry awards in Poland, the Czech Republic, Slovakia and Hungary" – says Daniel Franke, Managing Director of FM Logistic for Central Europe
FM Logistic has opened 5 new locations in Central Europe (in Gdańsk, Szczecin, Łódź, and Będzin in Poland, and in Lovosice in the Czech Republic) to meet the demand from the existing and potential customers. FM Logistic's turnover has been growing each year thanks to a consistently implemented strategy and friendly economic growth rates in Central Europe. In relation to the previous year, the company recorded a 12.5% increase in turnover, which, together with an increase in operating profit, resulted in a significant improvement in profitability. Trade turnover in 2018-19 increased by 10% in Poland, by 24% in the Czech Republic, by 6% in Slovakia, and by 25% in Hungary.
In parallel, FM Logistic continued to invest in the automation of its warehouse processes, enhancing operational efficiency with the deployment of additional automated guided vehicles (AGVs), collaborative robots (cobots) and inventory drones. The company also continued its digital transformation, with the migration of several applications to the cloud, the adoption of new warehouse management systems (WMS), the rollout of a digital HR Suite, and the implementation
of Google’s GSuite.
In FY FM Logistic CE extended cooperation with new clients like IKEA, Biedronka, InterVion, Chipita, Zentiva, Pepco, Kwidzyn, Żywiec, McCormick, Fanex, Polpharma, Woseba, Continental Bakeries.
Representatives of the Polish and Slovak teams won the main prizes inthe international FM Logistic Faster Mind Challenge competition, addressed to students and graduates of universities. The aim of the competition is to promote innovation through initiating and implementing projects that may help FM Logistic achieve the goals setout in its strategy of sustainable development.
Moreover logistic platform in Jarosty as a first in the history gained 90 % score in audit of standard operating procedure of IKEA.
For FY 2019-20, FM Logistic expects a further improvement of EBIT on the back of slower revenue growth due to increased commercial selectivity. These objectives are to be understood at constant exchange rates and excluding acquisitions.