Geodis/Dentressangle results point to upturn
Two of the leading companies in the French logistics market have released an update on their trading situations over the first quarter of 2004.
Geodis announced that its net sales had risen in the first quarter by 5.1% to €823.4m (5.5% without adjustment for currency fluctuations) compared to the same period in 2003. Revenue growth in France was 5.5%, slightly lower than that experienced throughout the rest of Europe. Within its non-French business, Ireland saw the highest levels of growth (60%) as its contract with IBM got underway. Benelux and Spain also saw dynamic growth with rises of 17% and 13% respectively. In contrast volumes in Germany fell and Italian revenues were flat.
Norbert Dentressangle meanwhile has continued its strong growth with revenues in its first quarter increasing by 11.1% year-on-year to €324m. Within this figure, logistics revenues grew by 16.1% to €123m (including its Italian acquisition Cidem) and transport, the company’s traditional focus, by 8.2% to €201m. Allowing for the acquisition, organic growth amounted to 7.6%.
The French market has been particularly hard hit by the economic downturn in mainland Europe. In the past year most companies have struggled to make money in the market, and there has been significant fall out. TDG withdrew from owned operations, and Belgian company ABX sold the majority of its contract logistics business to a local company. Companies have complained not only about falling volumes but about the inflexible labour conditions in the market, and other rising costs which they have been unable to pass on to their clients.
