- Good resilience of ID Logistics' business model despite the
Covid-19 health crisis
- First-half sales growth of 4.3% (+2.0%
like-for-like)
- Underlying operating income up to €20.1 million
- Net financial debt reduced by €30.1m to 0.7x EBITDA
Regulatory News:
ID Logistics, (Paris:IDL) (ISIN : FR0010929125, Mnémo : IDL) one
of the European leaders in contract logistics, announces its
results for the first half of 2020 with revenues of €776.6 million,
up 4.3% (+2.0% like-for-like), an increase in underlying operating
income to €20.1 million (2.6% operating margin) and a decrease of
€30.1 million in net financial debt to 0.7x EBITDA.
Eric Hémar, Chairman and CEO of ID Logistics,
commented: « During a first half of 2020 marked by the health
crisis linked to the Covid-19 pandemics, all the ID Logistics teams
have been particularly proud to have been able to ensure, at the
heart of the crisis, the essential logistics needs in the countries
most affected by the virus. ID Logistics has also been able to
allow, under good conditions, the rapid recovery of the activity of
some of its customers. In this unprecedented context, the Group
experienced growth in its business and its underlying operating
income. This first half illustrates the resilience of our Group's
business model and the flexibility of our organization. The
diversified client portfolio, the quality of our partnerships, our
well-balanced international footprint and the commitment of our
teams have been decisive assets in overcoming this unprecedented
crisis. »
Key financial indicators
€m
H1 2020
H1 2019
Revenues
776.6
744.5
EBITDA
97.5
95.3
As a % of revenues
12.6%
12.8%
Underlying operating income
20.1
19.5
As a % of revenues
2.6%
2.6%
Consolidated net income
6.5
6.6
As a % of revenues
0.8%
0.9%
30/06/2020
31/12/2019
Net financial debt
59.0
89.2
Lease liabilities (IFRS 16)
375.2
379.7
Net debt
434.2
468.9
Equity
209.3
204.0
ID Logistics: a commited player against the pandemics
Facing the health crisis, ID Logistics has identified three main
priorities:
- ensure the safety of its employees by providing working
conditions that meet the highest standards of health safety ;
- support its customers as closely as possible to their needs,
whether they are in high volume (sites dedicated to food
distribution, health, hygiene or e-commerce), with reduced or
stopped activity ;
- preserve the Group's cash flow and financial structure.
The pursuit of these three priorities enabled ID Logistics to
ensure a full continuity of service throughout the crisis and a
rapid restart of activity.
Revenue growth in the first half of 2020
In the first half of 2020, ID Logistics generated sales of
€776.6 million (+4.3% and +2.0% like-for-like):
- In France, sales for the first half of 2020 came to
€344.1 million, down slightly (-1.4%) vs. H1 2019.
After good growth in activity (+3.5% in Q1 2020), the second
quarter was impacted by lock-down measures and ended down (-5.9%
compared with 2019).
- International revenues for the first half of the year
came to €432.5 million, up 9.4% vs. H1 2019.
This performance includes a generally unfavorable exchange rate
effect, particularly in Latin America, and a change in the scope of
consolidation due to the end of operations in South Africa in
September 2019 and the consolidation in December 2019 of the Jagged
Peak activities in the United States. Excluding these items,
revenue growth for the first half of the year was +5.4%. As in
France, the second quarter saw a slowdown due to the Covid-19
crisis (-0.2%) after a very good performance in the first quarter
(+11.2%).
Over the period, the Group started up 10 new sites (3 in France
and 7 internationally), in line with the initial business plan.
Increase in underlying operating income
In this unique context, the diversified customer portfolio, the
Group's balanced international footprint and the commitment of its
teams enabled ID Logistics to improve its current operating income
to €20.1 million at June 30, 2020 (vs. €19.5 million at June 30,
2019), and to maintain a stable operating margin at 2.6%.
- In France, one of the countries most affected by
Covid-19, the operating margin went from 3.8% in H1 2019 to 2.8% in
H1 2020. Most of the decrease is due to direct costs (masks,
hydroalcoholic gel, specific incentives, etc.) and indirect costs
(loss of productivity, volume volatility, non-attendance, etc.) of
the health crisis, partly shared with clients.
- Outside France, on the other hand, the operating margin
rose sharply, from 1.6% in the first half of 2019 to 2.4% in the
first half of 2020. The impact of the health crisis in Spain was
more than offset by solid performances in countries such as
Germany, the Netherlands and Russia, which benefited from the good
productivity gains on recently launched projects. Results outside
France also benefited from the favorable integration over the first
half of the year of the activities in the United States acquired at
the end of 2019.
Stable consolidated net income
H1 2020 results include a non-current expense of €1.5m
(including €0.8m of asset impairment) following the Group's
decision to cease its activities in China (representing less than
1% of the Group revenues), following the change of shareholder of
its main client in the country. Despite this expense, net profit
for the first half of 2020 is stable compared to the first half of
2019 at €6.5 million.
Disciplined cash management and reduction of net financial
debt
In the context of the health crisis linked to Covid-19, the
Group has been particularly attentive to the management of its cash
flow:
- The cash generated by the activities amounted to €97.5 million
during the first half of 2020 (+€51.8 million vs. 2019) :
- A strict management of the working capital requirement has
enabled the Group to reduce the average time to receive payment
from customers by 4 days, representing €18.7 million in current
cash;
- The Group used government measures allowing the deferral of
certain social contributions for an amount of €20.5 million during
the first half of 2020;
- Finally, ID Logistics and its customers have adopted a
selective and progressive investment logic, limiting the latter to
€26.9 million during the first half of 2020 (-€9.8 million vs.
2019).
- During the first half of 2020, ID Logistics finalized the
refinancing of the balance of its acquisition debt with a new €100
million 5-year loan with its historic bank syndicate. This
operation resulted in a net cash inflow of €30.4 million before
expenses, better financial terms than the refinanced loans, and
very gradual repayments. On this occasion, the Group also
negotiated a 5-year revolving credit facility of €50 million, which
has not been used to date.
At June 30, 2020, after payment of lease debt (IFRS 16) and
other changes, the Group thus has a net current cash position of
€148.6 million and net financial debt is limited to €59.0 million,
or 0.7x EBITDA.
Outlook
ID Logistics intends to continue its development while remaining
alert to the evolution of the health crisis. It will be
particularly attentive to the openings planned for 2020 (15 in
total), to the increase in productivity of the projects already
started and to the support of its customers.
After having validated its business model during this crisis, ID
Logistics is ready to seize the opportunities that will arise
through the development of e-commerce, the industrial relocation in
Europe, the strengthening of outsourcing and the concentration of
the sector.
Additional note: Audit procedures on the consolidated financial
statements have been performed.
The certification report will be issued after completion of the
procedures required for the purpose of publishing the annual
financial report.
NEXT REPORT: Publication of third-quarter 2020 revenues
after the market close on 22 October 2020.
ABOUT ID LOGISTICS
ID Logistics is an international contract logistics group, with
revenue of €1,534 million in 2019. ID Logistics has more than 320
sites across 18 countries, representing 5.8 million square meters
of warehousing facilities in Europe, America, Asia and Africa, with
21,000 employees. With a client portfolio balanced between retail,
industry, detail picking, healthcare and e-commerce sectors, ID
Logistics delivers high-tech solutions and is firmly committed to
sustainable development.
ID Logistics is listed on Compartment A of NYSE Euronext’s
regulated market in Paris (ISIN Code: FR0010929125, Ticker:
IDL).
APPENDIX
- Simplified statement of income
(€m)
H1 2020
H1 2019
France
344.1
349.0
International
432.5
395.5
Revenues
776.6
744.5
France
9.7
13.2
International
10.4
6.3
Underlying operating income
20.1
19.5
Amortisation of customer relationships
(0.6)
(0.6)
Non-recurring expenses
(1.5)
-
Financial result
(6.9)
(7.6)
Income tax
(5.1)
(5.0)
Share in income of associates
0.5
0.3
Consolidated net income
6.5
6.6
o/w attributable to ID Logistics’
shareholders
5.3
5.5
*IFRS 16
- Simplified statement of cash flows
(€m)
H1 2020
H1 2019
EBITDA
97.5
95.3
Change in working capital and others
38.7
(4.9)
Other changes (non-recurring, tax,
etc.)
(11.8)
(8.2)
Net investments
(26.9)
(36.7)
Net cash generated/(used) by operating
activities
97.5
45.5
Net issuance (repayment) of debt
30.5
(1.8)
Reimbursement of lease liabilities (IFRS
16)
(65.9)
(62.7)
Others
(4.0)
(1.4)
Increase (decrease) in cash and cash
equivalents
58.1
(20.4)
Cash and cash equivalent – beginning of
period
90.5
105.7
Cash and cash equivalent – end of
period
148.6
85.3
Definitions
- Like-for-like change: change excluding the impact
of:
- acquisitions and disposals: the revenue contribution of
companies acquired during the period is excluded from the same
period, and the revenue contribution made by companies sold during
the previous period is also excluded from that period
- changes in the applicable accounting principles
- changes in exchange rates (revenues in the various periods
calculated based on identical exchange rates, so that the reported
figures for the previous period are translated using the exchange
rates for the current period).
- EBITDA: Underlying operating income before net
depreciation of property, plant and equipment and amortisation of
intangible assets
- Net financial debt: Gross debt plus bank overdrafts and
less cash and cash equivalents
- Net debt : Net financial debt plus rent liabilities
(IFRS 16)
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version on businesswire.com: https://www.businesswire.com/news/home/20200826005638/en/
ID Logistics Yann Perot CFO Tel.: + 33 (0)4 42 11 06 00
yperot@id-logistics.com
NewCap Emmanuel Huynh / Thomas Grojean Investor Relations &
Financial Communications Tel.: +33 (0)1 44 71 94 94
idlogistics@newcap.eu
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