(BFM Bourse) – The contract logistics specialist published annual results on Wednesday evening “in line” with the expectations of TP ICAP Midcap. ID Logistics has maintained its profitability while continuing its active international development.
ID Logistics follows its path smoothly. The specialist in so-called “contractual” logistics (the group manages the supply chain of its clients, for example with players in e-commerce, agri-food or DIY) has published solid results under the year 2023.
In 2023, the Orgon-based group’s revenues grew for the 22nd consecutive year (+7.2% in organic data and +10.9% in published data) to 2.75 billion euros, a figure multiplied by 3.8 over the last 10 years.
“This performance includes the turnover of Spedimex, a company acquired in Poland and consolidated since June 1, 2023, as well as the full-year effect of Kane Logistics, a company acquired in the United States and consolidated from April 1, 2022,” recalls ID Logistics.
Over the years, the Orgon-based group has established itself at European level as one of the main players in contract logistics. Through well-targeted acquisitions, ID Logistics now manages nearly 4,000 sites located in 18 countries representing nearly 8 million square meters operated in Europe, America, Asia and Africa.
An improvement in profitability
Active on the external growth front, the Bucco-Rhodan group also improved its operational profitability over the year 2023. Ebitda (gross operating surplus) increased by 16.6% over one year to reach 434, 7 million euros, for a corresponding margin which mechanically increases by 80 basis points (0.8%, Editor’s note) to 15.8%.
Current operating income followed the same path and increased by 16.3% to 125.8 million euros. “As is often the case, the international sector is delivering these results with an increase in the operating margin of 30 basis points (0.3%) to 4.7% while France logically suffers from the drop in volumes but still displays a certain resilience at 4.2%”, underlines TP ICAP Midcap.
In total, the group records an operating margin of 4.6% in 2023, which marks an increase compared to the 4.4% revealed for the year 2022. “The group continues its development while slightly improving its profitability “, appreciates the financial intermediary.
A little further down in the accounts, net profit jumped 36% over one year to stand at 52.1 million euros. ID Logistics’ profits in 2023 would have been higher if the company had not included a reversal of 7.1 million euros of earn-out on an acquisition and suffered an increase in financial charges.
Another good point of the publication, the generation of cash linked to the activities of ID Logistics which increased by 26% over one year, to stand at 356.9 million euros. The debt ratio before application of an accounting standard, for its part, continued to decline to 1.6 times current Ebitda at the end of December 2023.
“ID Logistics’ annual results are in line with our expectations,” underlines Florent Thy-tine, head of equity research at TP ICAP Midcap.
A year 2024 similar to 2023
According to the specialist, the year 2024 “should resemble 2023”, while the group, as usual, does not give a quantified perspective. “Given the Group’s rapid deleveraging since the 2022 acquisitions, the group is attentive to external growth opportunities, in Europe and the United States,” declares ID Logistics by way of outlook.
Florent Thy-tine compensates for this deliberate lack of quantified objectives. For 2024, the specialist expects ID Logistics to publish “double-digit growth and a slight improvement in operating margin”.
This solid publication leads the analyst to renew his buy opinion and his price target of 384 euros on ID Logistics. This target thus reflects a potential increase of almost 10%, on the basis of a title up 5.1% to 349 euros this Thursday around 4:40 p.m. after this quality publication.
Up 16% since the start of the year, ID Logistics is a solid tenant of an SBF 120 which it joined a few days before summer 2023. A stock market consecration for the logistics specialist which has seen its value multiplied by almost 17 since its IPO in 2012 at a price of 21 euros per share.
Sabrina Sadgui – ©2024 BFM Bourse
Are you following this action?
Receive all the information on ID LOGISTICS GROUP in real time: