FM Logistic’s double-digit growth a sign of ‘customer confidence’
FM Logistic has 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’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 e-commerce 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.
In France, FM Logistic started, or extended, 19 new customer projects and inaugurated two new multi-client logistics platforms in Escrennes (in the Loiret district) and L’Herbergement (in western France) to answer the demand from leading consumer goods and retail brands.
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 G Suite.
In FY 2018-19, FM Logistic started to roll out a new sustainable development programme. This translates into, among others, the installation of solar panels on the rooftops of the new logistics platforms at Escrenne and l’Herbergement, France. FM Logistic has also teamed up with a French research university to design and develop an exoskeleton especially made for logistics operators.