FM LOGISTIC announces its results for 2017-2018, a year of strong growthGroup
“I am proud to see the company prosper and our teams gain ground in every market. That satisfaction is also due to the fact that our customers have renewed their confidence in us. However, that high rate of growth has also been a source of difficulty. Our numerous start-ups and the sharp rise in wage costs, particularly in Central Europe, have affected our profitability. “ says Jean-Christophe Machet, CEO of FM Logistic Group
Ever increasing influence
Over the last financial year (April 1, 2017 - March 31, 2018), FM Logistic generated revenues of 1.178 billion euros, which amounts for a organic growth of 9.5%. This is a remarkable result in a sector that showed dynamism in 2017.
As a reference player in supply chain management, FM Logistic generates more than half (56%) of its turnover through its warehousing and handling activities. Transportation activity, up 13% over last year, now accounts for 34% of sales and packaging 10%.
Stabilizing growth to ensure consistent profitability
While growing, FM Logistic Group focuses on operational excellence and continues to roll out its continuous improvement approach to strengthen its bases. E-commerce expertise, multi-client and multi-activity platforms (logistics activities, co-packing, cross-docking combined) and open innovation initiatives are all assets that allow the company to offer high value-added offers combining transport, distribution and urban transport.
The Group relies on four strategic axes defined by its "Focus" plan:
- Managing customer relations
The upward trend in production costs (linked in particular to the shortage of drivers in Europe or to the significant wage inflation in Eastern Europe) has led the Group to pay particular attention -for each specific projects - to changes affecting its profitability.
- Strengthening business basics
Maintaining and continuing to develop operational excellence is a priority. The development of a training plan entitled "Focus on basics" is being rolled out to operational managers.
- Skills development
Developing training and strengthening Human Resources processes to better anticipate recruitment needs and facilitate the integration of new hires.
- Better selectivity of new contracts:
After two years of strong organic growth of about 10%, the Group wants to temper its development pace to better absorb the many startups activities. FM Logistic will thus put its commercial focus on projects that complement and sustain the Group’s sector-based strategy.