French logistics group Geodis with strong H1 results
Business was strong for Geodis, the logistics subsidiary of French state railway SNCF, in the first half year of 2006. Express business in France was one of its growth areas.
Geodis increased revenue by 7.3% (6.1% on a comparable, like-for-like basis excluding changes in exchange rates) despite an unfavourable business calendar (two fewer business days in France).
Total revenue for the first half of 2006 increased to €1,887 million from €1,759 million for the same period last year. From this €1,316.9 million was generated in France, €526.8 million in the rest of Europe and €114.7 million in Asia & the rest of the world. Asia saw the strongest increase with a growth rate of more than 35 %.
In the first quarter, with a favourable business calendar (two additional business days in France), revenue increased by 10.7%; in the second quarter, with a very unfavourable business calendar (four fewer business days in France), revenue increased by 4.2%.
In France, revenue growth remained strong as a result of significant volume in Groupage and Express as well as in air and sea freight forwarding. Trucking experienced some moderate revenue growth, as well.
The rest of Europe also showed solid revenue growth, supported by the pursuit of new contracts in Eastern Europe and Germany as well as the return of growth to the activities in Italy. Asia and the rest of the world have shown strong revenue growth since the beginning of the year, particularly in China.
These factors should enable Geodis to show added growth to its first-half operating profits, which are also likely to benefit from the beginning of the recovery of VAT on toll payments in France.
