ID Logistics: Double-Digit Organic Growth in the First Nine Months of 2014

Regulatory News:

ID Logistics (Paris:IDL), one of the French leaders in contract logistics, recorded third-quarter 2014 revenues of €224.5 million, up 11.5% at constant exchange rates compared with the third quarter of 2013 (up 8.8% at current exchange rates).

Over the first nine months of the year, growth ran at 23.8% compared with 2013, with a like-for-like increase of 12.3% adjusted for the acquisition of CEPL and at constant exchange rates.

Eric Hémar, Chairman and CEO of ID Logistics, commented: "The Group performed well during the third quarter of 2014, recording double-digit organic growth, in keeping with its track record in previous quarters. This growth was fuelled by both the full-year impact of contracts that started up in late 2013 and the fresh impetus provided by contracts started up since the beginning of the year. Thanks to the integration of CEPL, the Group has maintained its double-digit growth despite facing a higher base of comparison. In addition, ID Logistics clinched strategically important e-commerce and international accounts during the third quarter.”

* at constant exchange rates and at comparable scope

GROWTH IN THIRD-QUARTER 2014 REVENUES

In France, revenues totalled €125.8 million, up 10.1% compared with the third quarter of 2013. The contracts launched since the beginning of 2014, including with Conforama, Point P and Nespresso, picked up the baton from the contracts that started up in late 2013, while the price/volume effect remained relatively neutral during the quarter.

International revenues rose to €98.7 million, up 7.3% compared with the third quarter of 2013 and up 13.4% at constant exchange rates. The negative currency effect of €5.0 million was smaller than in previous quarters owing to the stabilisation in the Brazilian real and to the larger proportion of business denominated in euros following the acquisition of the CEPL group. During the quarter, organic growth was driven mainly by business in Spain, Russia, Poland and Argentina. Overall, international markets again contributed 43% of the Group’s revenues.

NEW BUSINESS

• IN FRANCE: CDISCOUNT

ID Logistics has been selected by Cdiscount, France’s number one e-commerce company, to handle part of its e-commerce logistics flows in France at a 50,000m² hub at Saint-Mard in the Paris region. From October 2014, this hub will gradually start to process the large white goods, small electrical appliance, video and audio equipment product categories.

Cdiscount has announced the launch of a new delivery option to express collection points. To cover France’s largest towns and cities, it plans to open up 100 express collection points for products over 30kg. These collection points will serve around 80% of its customers–mainly urban dwellers who need an emergency replacement for a household appliance or large item of equipment.

The new Saint-Mard facility will serve northern France and provide people living in the Paris region with a one-day delivery service to 30kg+ express collection points.

With the addition of new customers such as Conforama.fr, Nespresso and Privalia since the beginning of 2014 and again more recently by clinching this contract with Cdiscount, ID Logistics has demonstrated its significant expertise in e-logistics.

• INTERNATIONAL: CARREFOUR IN CHINA

ID Logistics has been present in China since 2003, serving customers including Auchan, Danone, Carrefour, Metro, GEFCO and AB InBev. With close to 500 employees, the Group has 11 logistics hubs in the country, mainly located in the Beijing, Shanghai and Guangzhou regions. Thanks to the experience it has gained there, ID Logistics is well-placed to seize the opportunities offered by the changes taking place in logistics flows in China.

For example, ID Logistics began in July 2014 to handle Carrefour’s logistics flows in the Greater Shanghai region from a single platform located at Kunshan (60km from Shanghai) from which it is initially making deliveries to 62 group hypermarkets. This 26,000m² hub, which is dedicated to dry foods, has close to 150 employees and will serve as a model for forthcoming developments.

OUTLOOK REITERATED

ID Logistics’ business environment remains buoyant, with numerous calls for tenders taking place in the Group’s traditional business segments and also in highly-automated solutions for retail order fulfilment. The same trading pattern can be seen in France and international markets, including Germany and the Netherlands, countries into which ID Logistics expanded recently through the acquisition of CEPL and where it is now starting to apply its sales and marketing strategy. The Group should thus record double-digit organic growth in 2014 and has today some degree of visibility on 2015.

NEXT PUBLICATION

Publication of 2014 revenues after the market closes on 28 January 2015.

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.