ID Logistics reported revenue growth of 9.7% to €696.0m in the third financial quarter of the year. This was driven by 17.0% growth in revenues in its International division that generated €489.9m, and 11.0% like-for-like growth in Europe excluding France.
Eric Hémar, CEO of the company said, “As expected, ID Logistics revenue growth rebounded sharply in the third quarter, driven by the start-up of significant projects in several of our key countries”. Four of those new operations were:
-A 120,000 sq m site near Katowice, Poland that will employ 3,000 people
-An 86,000 sq m site in Pennsylvania, USA on behalf of a US global e-commerce giant
-A 60,000 sq m site in Zaragoza, Spain
-A 18,000 sq m site in the UK which will handle returns for an international fast fashion brand
The new site in the UK was originally planned by Spedimex, acquired by ID Logistics in May for €77.4m. This enables it to break into the UK market and now means that the company operates in most of Europe.
At the time, Eric Hémar said, “We are delighted to open our first site in the UK, an important step in our growth strategy in Europe.”
ID Logistics France operations however saw a decline of 4.5% in revenues, despite the company taking over a 45,000 sq m site near Lyon for Galeries Lafayette. The drop in revenues was attributed by the company to a softness in volumes in its consumer facing markets in the country.
Though the company has seen growth thanks to the start of new operations, the underlying fundamentals – uncertainty in consumer markets in Europe and the USA – may indicate that revenues excluding the opening of new sites will be less considerable in the coming months. The new warehouses have however opened just in time for the peak season in consumer facing logistics and should benefit from the associated volume growth.
Author: Richard Shrubb
Source: Ti Insights
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