GXO, the contract logistics company spun off from XPO Logistics in 2021, has had a 29% growth in y-o-y profits to $197m in 2022. The strong growth was partly from a jump in revenues of 13.3% to $9bn in the period.
2022 marks the first full year as a standalone company for GXO, and so far it has had promising results. In part driven by its acquisition of UK rivals Clipper Logistics, GXO saw a 25% y-o-y growth in UK revenues, hitting $3.29bn in 2022. The Clipper acquisition directly led to a growth of 19% in reverse logistics in the fourth financial quarter.
CEO Malcolm Wilson said of the acquisition: “The integration of the Clipper acquisition is well underway, and we are already realising significant cross sell opportunities, including an exciting new partnership with Farfetch. We now expect to realise the full synergies from this transaction even faster than initially anticipated.”
US operations also saw strong growth, with revenue up 16% to $2.86bn in 2022. Many of its other geographical revenues remained fairly flat, with a small drop in France and a -0.7% drop in Italy and other locations. This is directly attributable to the ongoing macroeconomic factors affecting Europe due to the energy crisis and impacts of inflation on consumers.
Even so, the contract logistics company saw a 24% growth in revenues in its Technology and Consumer Electronics segment, taking $1,337m in 2022.
Though the company expects a softer macroeconomic environment in 2023, the CEO is very positive about the year ahead. In the fourth quarter GXO said it had $2.1bn in its sales pipeline, leading the CEO to say, “We are pleased to start 2023 with sizeable opportunities in our pipeline across all verticals and geographies, I want to thank all of my GXO team members for delivering a standout year, our first as a standalone company,” continuing, “Our wins to date, combined with the predictability and resilience of our business, give us great confidence entering 2023.”