GEFCO Group has announced its 2017 full year results following another strong 12-month performance.
2017 marked a milestone in the group’s long-term improvement strategy with both the Overland and Freight Forwarding business returning to profit. Both divisions were underperforming when the new management team arrived in 2013, and have improved margins every year as a result of GEFCO’s drive for operational excellence.
Group revenue was €4.4bn, up 5.1% from €4.2 bn in 2016, with EBITDA accelerating 16% to €201m.
The focus has been on rigorous KPIs, operating excellence, global monitoring, increased innovation and internal communication to test and share best practices.
Luc Nadal, Chairman of the Management Board of GEFCO, said: “2017 has been another strong year for GEFCO with progression in both our revenue and profitability, reflecting the strength of our offering to customers and our ongoing drive for operational excellence.”
“Our strategy continues to deliver growth, as demonstrated by an improvement of over 8% year on year in revenue from Market Clients. Our operational excellence programme, commenced in 2014, has made strong progress in turning around the company’s historically loss-making divisions, and reached a milestone in 2017 with both our Overland and Freight Forwarding business returning to profit.”
GEFCO’s made solid gains across all divisions, with a significant portion of the Group’s top line growth coming from a strong performance in the Market Clients segment (i.e. accounts outside of the historical and stable PSA and General Motors mandates).
The group increased these revenues by 8.1% with significant contract wins within the automotive market coming from Jaguar-Land Rover, Volkswagen, Tesla, Audi, Volvo, Renault-Nissan, and also Carglass and London Electric Vehicles. The company also continued its rapid expansion in non-automotive with new contracts in Food, Retail and Fashion (Amazon, Baron de Rotschild, Kiabi, LC Waikiki and L’Oréal), Energy (Gazprom Neft-Supply), Aerospace (Safran), Industrial Manufacturers (Severstal), Life Sciences and Healthcare (Fresenius, Procter and Gamble), recognising the unique skills and capabilities within the organization. Non-automotive sales now represent over a third of GEFCO’s [non-PSA revenue].