Geodis profits soar by 50%
Europe’s Geodis turned in net profits of EUR 48.4 million last year, up 50% on 2005. Earnings per share rose 48% to EUR 7.80 from EUR 5.25 on revenues up 5.3% to EUR 3.78 billion. The board is recommending increasing the dividend by 11% to EUR 2.45 a share.
The company said it aimed to increase revenue by 40% over the next three years and lift operating margin, currently 2.8%, to around 4%.
It performed better last year in Europe (excluding France), coming close to break-even with an operating loss of just EUR 0.5 million, reflecting recovery in Italy, where operating losses were limited to EUR 3.6 million, and improved UK results.
The company’s international region (Asia, Africa, Mexico) performed well in the second half of the year. Operating profit for the six-month period came to EUR 3.8 million, reflecting increased revenues after a difficult first half.
Geodis continued to pay down its debt in 2006. At the year-end, net debt stood at EUR 157.3 million, down EUR 89 million from 31 December 2005. In France, strict application of the law concerning payment terms within the business drove a sharp fall in working capital requirement of around EUR 51 million.
The board, led by chairman Pierre Blayau, said Geodis’ aims from now until the end of 2009 were to confirm its leadership in the French distribution market and grow the business in Europe; develop high-quality contract logistics offers; and integrate TNT Freight Management, which it completed buying last month.
A restructuring into core business divisions, which will be up and running as of 30 March, will contribute to achieving these goals, said Geodis. It currently has over 23,800 employees in 120 countries.
