GXO has reported its first quarter 2022 results. The company reported first quarter revenues of $2.1bn, up 14.0% y-o-y from $1.8bn the previous year. Operating income also rose by 23.3% y-o-y to $37m, from $30m the previous year.
The company stated it saw record first quarter new business wins, with over $1bn of incremental revenue contracted for 2022, equivalent to 13.0% of its 2021 revenue. These wins are expected to generate $192m in incremental revenue in 2022, and incremental revenue of approximately $217m has already been contracted for 2023.
Revenue in all GXO’s verticals grew in the first quarter of 2022. In the company’s e-commerce, omnichannel retail and consumer technology segment, its most profitable vertical, revenue grew by 18.8% y-o-y to $1.1bn. According to GXO, the company witnessed accelerating demand for first-time outsourcing, particularly within this segment.
The food and beverage segment reported a revenue increase of 13.0% y-o-y, to $338m, up from $299m the previous year. Industrial and manufacturing rose by 6.0% to $263m, and consumer packaged goods rose by 14.5% y-o-y to $213m.
The majority of GXO’s revenue in the first quarter came from the United Kingdom ($704m) and the United States ($681m). Revenue in the United Kingdom and the United States rose by 27.5% y-o-y and 16.6% y-o-y, respectively.
CEO of GXO Malcolm Wilson commented: “Across our business in the first quarter, we saw solid volumes and growth in all of our verticals. Looking to the remainder of 2022 and beyond, we continue to benefit from multi-year revenue visibility, exceptional growth opportunities with new and existing customers, and a predictable, contractual business model. Our new business wins, combined with our record sales pipeline and continued high revenue retention rate, allow us to raise our 2022 organic revenue growth guidance to 11-15.0% and introduce an adjusted diluted EPS guidance of $2.70-$2.90 for 2022 implying growth of between 29.0% and 39.0%”.
Source: GXO
