ID Logistics: Growth Continues in the First Quarter of 2015

Regulatory News:

ID Logistics (Paris:IDL), one of the French leaders in contract logistics, posted first-quarter 2015 revenues of €214.3 million, up 6.1% compared with the first quarter of 2014 and up 5.1% like-for-like.

Eric Hémar, Chairman and CEO of ID Logistics, commented: "Carrying on where it left off in the final quarter of 2014, ID Logistics delivered performance in line with expectations during the first quarter of 2015. The Group continues to record brisk commercial activity, with 2015 starting off on a healthy note and a large number of calls for tenders ongoing.”

* at constant exchange rates

REVENUE GROWTH

In France, revenues totalled €121.6 million. With a growth of 4.3%, revenues in the first quarter of 2015 were underpinned by a mildly positive price and volume effect, amid inflation running at close to zero. As forecast in late 2014, a smaller number of new contracts than in the first quarter of 2014 started up because decision-making by customers regarding important projects is longer.

International revenues came to €92.7 million, up 8.7% compared with the first quarter of 2014 and up 6.2% on a like-for-like basis. International business was vibrant, owing mainly to the start-up of new contracts in 2014, a positive price and volume effect and, for the first time in two years, broadly supportive currency effects.

BUSINESS DEVELOPMENT

In France, the Group was awarded new contracts, including:

• In the e-commerce segment, ID Logistics was selected to handle logistics at Auchandirect’s three facilities in the Paris region (150 people, growth of 15% p.a.) from June 2015 onwards. Following on from the contracts sealed with customers such as Cdiscount and Conforama.fr, ID Logistics has consolidated its position in France as a leading player in e-commerce logistics.
• In addition, ID Logistics has maintained its policy of providing support to customers by opening up a new platform specially geared to handling "hazardous products” on behalf of Groupement des Mousquetaires.

International business remained vibrant, with the Group awarded some prestigious contracts and numerous calls for tenders ongoing:

• In Barcelona (Spain), ID Logistics started up a new contract for book publisher Planeta in February. This conventional warehousing operation also includes co-packing services, adding to the expertise already gained by ID Logistics in this area in Spain with customers such as Puig and, more recently, Coty.
• In the Netherlands, the Group rolled out in April a new operation for Fujifilm. This handles centrally at the Tilburg site (50,000m²) several activities previously managed in a number of different European countries.
• In Spain, after a call for tenders running for several months, the Group was selected by Auchan to operate a new 31,000m² site in the Madrid region from May.
• For Auchan, too, the Group is due to start up a new operation at a 47,000m² facility in the Katowice region of Poland during July. This contract follows on from Auchan’s acquisition of the Real stores.
• In Russia, ID Logistics is set to start up a new operation for Metro in July, following on from those already in service in Poland and China.
• In Morocco, ID Logistics will open up a new warehouse management operation in July 2015 for Petit Bateau near one of their manufacturing facility. What’s more, ID Logistics will manage, from that site, all the ground and maritime transport flows and handle all the customs formalities.

OUTLOOK

After a first quarter in line with its business projections, despite uncertain economic conditions and longer customer decision-making times pushing back the start-up of new contracts, ID Logistics started 2015 on a healthy footing. In keeping with its strategy of topping up its organic growth with selective external growth, the Group continues to keep a close eye on acquisition opportunities.

NEXT REPORT

Publication of second-quarter 2015 revenues after the market closes on 22 July 2015.

ABOUT ID LOGISTICS

ID Logistics is an international contract logistics group, with revenue of €874.5 million in 2014. ID Logistics operates close to 200 sites across 14 countries, representing 3.6 million m² of warehousing facilities in Europe, Latin America, Asia and Africa, and has 13,000 employees. With a client portfolio balanced between the distribution, industry, retail order fulfilment and e-commerce sectors, ID Logistics delivers high-tech solutions and is firmly committed to sustainable development. ID Logistics is listed in Compartment B of Euronext’s regulated market in Paris (ISIN Code: FR0010929125). The Group is managed by Eric Hémar.