ID Logistics: Strong Revenue Growth in Q2 2014

Regulatory News:

ID Logistics (Paris:IDL), one of the French leaders in contract logistics, generated revenues of €213.6 million in Q2 2014, up 33.0% compared with Q2 2013, or 12.8% like for like.

Commenting on the figures, Eric Hémar, Chairman and CEO of ID Logistics, said: "ID Logistics achieved another strong commercial performance in the first half of 2014, winning some prestigious new contracts, notably in the area of e-commerce. The Group reported strong organic growth in both France and international markets. This growth is the fruit of our strategy of client portfolio expansion and our enhanced expertise in detail-picking logistics. Against this backdrop, we expect a still strong momentum in the second half, despite a tighter economic climate.”

* at constant exchange rates and scope of consolidation

REVENUE GROWTH FOR Q2 2014

In France, revenues came in at €123.7 million, up 33.9% compared with Q2 2013 or 12.9% like for like. The scope effect includes revenues from the French activities of CEPL, acquired in July 2013. On a like-for-like basis, this growth was mainly due to the start of new contracts since the end of 2013.

In international markets, revenues stood at €89.9 million, up 31.8% compared with Q2 2013. The inclusion of CEPL’s international activities (Germany, Netherlands, Spain) within the scope of consolidation from July 2013 easily offset unfavourable exchange rate effects during the quarter, mainly due to Latin America. On a like-for-like basis, international revenues rose 12.6%, on a high comparison base (+42% in Q2 2013). International revenues thus represent 42% of the Group’s total revenues.

NEW CONTRACT WINS

In France, activity remains very dynamic with several tender offers and the winning of new contracts, including notably:

• CONFORAMA: In Q1 2014 ID Logistics launched a new activity for CONFORAMA. Based in Blois, this 54,000m² platform manages all e-commerce logistics of the furniture retailer in France. Therefore, ID Logistics keeps reinforcing its expertise in e-commerce logistics, one of its strategic growth priorities.
• SAINT-GOBAIN DISTRIBUTION BÂTIMENT FRANCE: ID Logistics was selected to manage three new platforms in France: one at Derval with 33,000m², opened on 5 June; a second at Satolas, with 18,000m², opened in early H1 2014; and a third at Brie-Comte-Robert, with 24,000m², which will become operational at the end of 2014. This strong vote of confidence by SAINT-GOBAIN DISTRIBUTION will reinforce ID Logistics’ expertise in specialist distribution to professionals and reflects the Group’s strategy of supporting major clients in their logistics integration.
• NESPRESSO: Since 1 July 2014, ID Logistics has been managing all NESPRESSO’s logistics flows (stores, B2B network and e-commerce) in the South of France, from a single platform with 9,000 m² at Saulce-sur-Rhône. This first collaboration with Nestlé group through its subsidiary, NESPRESSO, validates ID Logistics’ strategy to develop further unit picking logistics.

ID Logistics keeps accompanying its clients in their development abroad, and notably wins the following contracts:

• The Group has signed several large contracts with new clients (FERRERO, HENKEL) in Brazil and Poland.
• It has supported several of its existing clients in their international deployment, such as Italian manufacturing company SOGEFI, already a client in France at the Ormes platform and now one of ID Logistics’ clients in Poland and, from H2, Brazil.
• ID Logistics started operations with DANONE in 2012 in South Africa which leads today to the creation of a joint venture between DANONE and ID Logistics. This JV will initially carry out all of the DANONE group’s logistics operations in southern Africa, and subsequently extend its activities to other clients there.

OUTLOOK CONFIRMED

Backed by a diversified client portfolio, a well-established international presence and professional skills that have been extended by its first commercial successes in detail picking, ID Logistics has demonstrated the solidity of its medium-term business model, and the relevance of the CEPL acquisition in 2013. The Group is confident on the outlook for the rest of 2014, despite a still difficult environment.

NEXT PUBLICATION

H1 2014 results: 27 August 2014, after market close.

ABOUT ID LOGISTICS

ID Logistics is an international contract logistics group, with revenue of €735 million in 2013. ID Logistics has 170 sites across 14 countries, representing 3.1 million m² of warehousing facilities in Europe, Latin America, Asia and Africa, along with 13,000 staff. With a client portfolio balanced between retail, industry, detail picking and e-commerce sectors, ID Logistics delivers high-tech solutions and is firmly committed to sustainable development. ID Logistics is listed on Compartment B of NYSE Euronext’s regulated market in Paris (ISIN Code: FR0010929125). The Group is managed by Eric Hémar.