Geodis plans French express acquisition
Geodis has signed a letter of intent to buy a French courier company called “46 Express” to strengthen its domestic express business. The deal was signed in July, according to the company’s half-year report.
“In July, Geodis signed a letter of intend to acquire the 46 Express group before the end of the year. This acquisition will deepen our express delivery network in France,” the company wrote. No further information about the company to be acquired was immediately available.
Meanwhile, Geodis has announced half-year results, with strong revenue growth following the February acquisition of freight forwarder Wilson (formerly TNT Freight Management). Consolidated revenue, including Wilson, rose by 22.1% to over €2,300 million, including 4.1% growth based on a comparable scope of consolidation and at constant exchange rates.
Revenue in France expanded by 5.9% to €1,394 million, led by steady growth in Groupage (LTL) and Freight Forwarding volumes, the company announced. Express revenues grew by 12% in the first half of 2007, boosted by the launch of pick-up and delivery operations for FedEx, Geodis said.
Express operating profit was stable with the positive effects of higher volumes and “ effective pricing policies” offset by higher operating costs and the start of a major new express contract, Geodis said in its H1 report. The company does not release express revenue or volume figures.
The company’s overall H1 consolidated operating profit fell to EUR 44.5 million, including EUR 14.1 million worth of Wilson integration costs, from EUR 53.1 million in first-half 2006. Net profit declined to EUR 14.2 million versus EUR 21.6 million in H1, 2006.
