(AOF) – ID Logistics has unveiled second quarter 2023 revenue of 658.2 million euros, up 3.6%. It rose by 3.3% like-for-like. The contract logistics specialist’s business was driven by International (68% of revenue). Its revenues reached 446.9 million euros, up 7.2% (+6.9% like-for-like).
France (32% of turnover) saw its turnover fall by 3.4% to 211.3 million euros “due to a drop in consumption volumes, particularly in the DIY, furniture and decoration sectors”. The group also mentions “a rigorous and selective risk management policy on the part of the company”.
“In the context of weak consumption in the first half of 2023, ID Logistics is focusing on the implementation of its variable cost model to continue to improve its operating profitability,” the company indicates in its outlook. According to the latter, the passage of the inflation peak should be accompanied in the second half of 2023 by the recovery in consumption and promotion periods, as the group has already seen in several European countries where it is present.
ID Logistics is preparing the many contract start-ups that will contribute to accelerating revenue growth from the second half of 2023.
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Key points
– Contract logistics group created in 2001;
– Turnover of €2.5 billion achieved at 35% in France;
– Positioning in 4 major markets: distribution for 37%, e-commerce for 25%, consumer products for 18% then technology (6%);
– “Asset light” business model, essentially warehouse logistics dedicated to each customer and involving a high level of technology, with a strong positioning in consumer goods and accelerated growth through acquisitions;
– Capital controlled by the founders Eric Hémar and Christophe Satin acting in concert (56.9% of the shares, 71.36% of the voting rights), the managers holding 3.12% of the shares and 3.92% of the voting rights, Eric Hémar being Chairman and Chief Executive Officer of the 9-member Board of Directors and Christophe Satin Deputy Chief Executive Officer;
– Controlled financial situation, with €324 million in shareholders’ equity against €310 million in financial debt (+ debt with firm rental commitments for €732 million), giving a leverage effect of 1.9.
Challenges
– Strategy of maintaining margins to finance development: customer portfolio of world leaders, non-cyclical, back-to-back rental, long-term contracts (5 years, 90% renewed), single-customer warehouses, volume commitments and price indexation on inflation;
– Innovation strategy focused on optimizing organizations, costs and ecological performance of logistics operations:
– robotics, internet of things (sensors, controls, storage flexibility),
– culture of innovation: organization of deployment of disruptive projects and innovation campus;
– “What we do” environmental strategy, organized by program, each site committing to one of the 14 themes (O carbon warehouse, O waste, biodiversity, etc.) and aiming for 2030:
– waste: recycling up to 85%,
– CO2 emissions: 40% decline vs 2018 for scopes 1 and 2, excluding offsetting,
– energy intensity: decline of 20%;
– Implementation of synergies with the American Kane, the sites opened in Italy and the Dutch GVT;
– Ambition to maintain the doubling of the size of the company every five years.
Challenges
– Entry to SBF 120 on June 19;
– Integration of Polish Spedimex and expectation of other acquisitions;
– After a 10.1% increase in revenues at the end of March, confidence in the pursuit of “profitable development, particularly in Europe (Poland and Italy) and the United States”;
– Absence of distribution of dividends, priority being given to financing growth.
Sector sheet – Business services
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