GLS reports positive results (NL)

General Logistics Systems B.V. (GLS), Amsterdam, reported its 2007/08 results with strong sales and volume increases and profits in line with expectations.

GLS increased its sales to 1.75 billion euros – an increase of 9.2 per cent. The number of parcels handled totalled 335 million, representing a new record. EBITA at 172 million euros was in line with expectations.

Ongoing expansion of EU network
GLS invested approximately 47 million euros in capital expenditure in 2007/08. In addition to France and Romania, new hubs and depots were opened in Austria and Poland; and additional franchise depots were acquired in Italy. “The newly established GLS Romania is growing and developing according to plan”, explains Back. The integration of GLS Belgium Distribution (formerly ABX BELGIUM Distribution) into the GLS system is also progressing as planned. “In the Benelux region, we are building two separate networks for freight and parcels.

Process conversion, including modifying the depots and harmonising the IT network, will be completed by the end of 2009.”

In 2008/09, GLS is planning network investments totalling 94 million euros – with significant investments in Germany, Poland, the Netherlands and France. The focus will be on rolling out industrial parcel production processes throughout the network as well as implementing new solutions for the “last mile” in B2C business. Other priorities will be the expansion of the GLS national and international express product offering, and GLS will continue to pursue global partnerships such as the recent cooperation agreement with Gati Ltd. in India.

Sustainability in growth
“In appraising investments, GLS will consider their environmental impact. In view of the challenges posed by climate change, we are increasing our activities in this area”, says Back. “It is our aim to reduce the Group’s CO2 emissions by 20 per cent per parcel in the next five years. Through new technologies and pro-active measures, we want to promote the use of renewable energy sources and use resources in a more efficient and environmentally friendly manner.”

GLS is expecting the European CEP market to grow at a moderate rate of ca. 3.5 per cent. In its international business, GLS Group is planning double-digit growth rates. “The increase in our international shipments is testimony to the strength of our European network and our high quality strategy”, says Back. GLS is also planning to increase its domestic volumes in excess of overall market growth. Back is confident: “In 2008/09, we will increase sales to 1.85 billion euros.“