Air, Business, Freight News, Logistics, Rail, Road, Sea

Revenue droops but Gefco finances remain robust

[ May 4, 2021   //   ]

Forwarding and logistics company Gefo reported €3.8 billion in revenues in 2020, a 19.7% decrease on the 2019 financial year, or-17.3% on a like-for-like basis. There was a slight decline in recurring EBIT margins from 4.3% in 2019 to 3.7% in 2020. However, it described its financial position as healthy, fuelled by significant operating profitability and strict working capital management and with a portfolio boosted by contract extensions and new business.

Chairman of the management board, Luc Nadal, commented: “Our revenues declined in April, May, and June at the height of major global disruptions in global business, but during the second half of 2020 we were able to increase our activities in line with our customers’ production ramp-up schedules. Given GEFCO’s extensive portfolio of automotive and industrial customers, we are pleased with our ability to maintain a robust operating margin in this difficult context.”

He said that GEFCO continued to help its automotive customers find solutions to keep their supply chains moving while for non-automotive customers it pursued diversification and adapted its multimodal logistic solutions to meet their changing needs. Time-critical solutions by air and road were in high demand among customers in the healthcare, consumer goods and electronics industries. Air & Sea division revenues rose to €339.8m, an increase of +1.6% compared with the same period in 2019 (+4.9% like-for-like).