Posted a record second half-year, offsetting the first-half decline
GEODIS reported revenue up 4.5% from 2019, to reach €8,361.0 million, as EBITDA declined 1.2% to €718.0 million. The EBITDA to revenue ratio was 8.6%, down from 8.9% in 2019. The Company’s performance included a record second half buoyed by eCommerce operations in contract logistics and freight forwarding.
All Geodis business lines quickly rolled out action plans to limit the impact of the crisis (adaptation of operations, savings plans, increased controls over credit risk and debt collection) and develop offerings tailored to the exceptional situation:
> Geodis Freight Forwarding set up air charters from June to December to satisfy customer transport needs in a context of reduced air freight capacity.
> Contractual Logistics activities increased significantly during the year, driven by the high volumes in the US eCommerce market.
> Following the impact in the Spring of the coronavirus crisis, other activities recovered well in the second half of the year.
Overall, Geodis managed to reduce its debt and posted a record second half-year, offsetting the first-half decline.
Geodis’ 2020 revenue increased by €173.0 million (2.1%) compared to 2019. It was affected by a scope impact of -€44.0 million and an exchange rate impact of -€152.0 million. At constant scope and exchange rates, revenue was up 4.5% (+€368.0 million). Revenue surpassed the 2019 level, driven by the solid momentum of Contract Logistics (US, Italy and France in Q4) and Freight Forwarding which, in addition to the introduction of a dedicated charter offer, benefited from favourable price impacts on air freight.
EBITDA fell by €10 million. At constant scope and exchange rates, it increased by €5.0 million. The COVID-19 impact was offset by the adaptation of operations, strong growth in Contract Logistics, the favourable price impact on Air Freight and the implementation of cost-cutting plans across all business lines (+€87.0 million).
For 2021, the Company has contrasted assumptions depending on business lines, with volume gains in certain activities (Contract Logistics, benefiting in particular from the eCommerce momentum, Distribution & Express and Sea Freight), but a more difficult recovery in volumes for Road Transport and Air Freight, the latter nevertheless benefiting from high prices. The Company expects improvement in EBITDA based on revenue growth and productivity gains in the various business lines. In 2021, Geodis forecasts growth in revenue and EBITDA compared with 2019, the pre-crisis reference year, while continuing to reduce its debt.