- Reported revenues of 1.518 billion euros, up 10.7% at constant exchange rates
- EBIT of 31.5 million euros
- 262 million euros in new contracts signed. Of these, 60% were dedicated to omnichannel
FM Logistic today released its annuals results for the year ended March 31, 2022. The full audited results are available in the annual report. FM Logistic posted revenues of €1,518 million in fiscal year 2021-2022. This represents an increase of 10.7% (at constant exchange rates) compared to the previous year. This growth was driven by strong omni-channel sales dynamics with e-commerce activities becoming increasingly widespread in newly signed contracts.
Earnings before interest and taxes (EBIT) amounted to €31.5 million. The year 2021-22 was marked by significant investments. These have been geared toward supporting business start-ups and automation projects. These benefits will be measured over the long term.
At FM Logistic Ibérica, the results have meant growth of more than 12% with strong investments in new openings and expansions of its owned facilities.
“Once again, despite economic ups and downs and stresses in global supply chains, FM Logistic has demonstrated its strength and strong resilience. Comparable revenues grew by 10.7% and we signed €262 million in new contracts, 60% of which were dedicated to omni-channel. I would particularly like to highlight the incredible resilience demonstrated by our teams. Despite multiple closures, they have shown an unwavering commitment to completing the most complex projects for our customers. Finally, 2021 was marked by the implementation of our strategic plan Powering 2030. This plan is focused on promoting an omnichannel and sustainable supply chain geared towards our employees and customers. Climate commitment is everyone’s business and we want to be actors of change,” explains Jean-Christophe Machet, president of FM Logistic.
Increased demand for omnichannel and port logistics solutions
262 million euros in new contracts won in 2021/22 testify to the growth dynamics in Europe and Asia. Growth mainly with international customers in the consumer goods sector.
To support its strong growth, the Maxi Zoo pet store chain has entrusted FM Logistic with the supply of its 263 stores in France. As well as the preparation and shipment of its e-commerce orders. The Savigny-sur-Clairis (France) site (57,000 m2) manages a stock of 15,000 products and handles nearly 5 million orders per year. Of which 1.2 million are placed by private individuals via the website. Since December 2021, FM Logistic has also been handling online orders from Maxi Zoo’s German and Polish customers, for an order volume that should reach 3 million in 2022. A new 35,000-square-meter warehouse in Głogów (Poland) will soon be dedicated to this activity.
The French automotive lubricants and additives company, Motul Ibérica, set up at FM Logistic’s platform in Illescas from where distribution for Spain and Portugal is carried out. The company provides a multi-client warehouse for the logistics services of storage, reception, dispatch, preparation, stock control and copacking.
“Within FM Logistic’s vision, we consider the Iberian Peninsula to be a logistics unit that must be optimized in all its logistics means and infrastructures. For this reason, we are developing connections with all the logistics nodes of a global supply chain from the ports to the big cities“, argues Pablo Gómez, general manager of FM Logistic Ibérica”.
During this fiscal year FM Logistic Ibérica has also landed in the Port of Ferrol and the Port of Barcelona, where it has started to carry out urban logistics operations.
Increasingly sustainable and resilient supply chains
In line with the ambitions defined in its Powering 2030 strategic plan, FM Logistic continues to make progress in developing more sustainable supply chains. Among the most notable achievements this year:
- Plastic reduction: In Brazil, FM Logistic supports Henkel in reducing CO2 emissions through deliveries with electric vehicles from its site equipped with solar panels. Kraft has replaced plastic in packaging. The result: 94 percent less plastic and a 30 percent reduction in operating costs.
Wella signed an environmental impact reduction agreement with FM Logistic Ibérica in November 2021. Under the terms of this agreement, the Illescas logistics center has replaced bubble wrap with recycled paper, and now packs products with cardboard boxes sized according to the bulk of the order. “We now use 45% less cardboard and 40% less paper,” explains Wella’s supply chain manager in Spain.
- Green hydrogen production stations: At its Illescas logistics center, FM Logistic has installed a green hydrogen production station powered by solar energy. The electricity required comes from photovoltaic panels located on the surface of the warehouse. The hydrogen station can produce up to 45 kg of green hydrogen per week. This project is supported by the Center for the Development of Industrial Technology (CDTI) and the European Regional Development Fund (ERDF).
- Innovation projects: We won the Reinventing Cities competition organized by the Climate Leadership Group (C40), a global network of cities (originally 40, and now around 100) committed to mitigating climate change by stimulating the development of building projects on underutilized sites.
The HiLife project focuses on building a logistics platform of the future using a combination of green materials, renewable energy generation and green spaces. Planned for the La Atalayuela Industrial Estate in Vallecas, the building will feature 13,300m2 of photovoltaic solar panels. It will generate enough electricity to be energy self-sufficient and feed surplus energy into the national grid. This logistics center will also have its own hydrogen production plant. It will power warehouse trucks and delivery vans. The center will even have its own kindergarten.
- Environmental impact report: FM Logistic has developed, with the consulting firm EY, a tool to report on the social and environmental impact of its activities. By measuring the positive and negative effects of its activities, The company wants to give its customers, employees and partners clear information to guide them in their decision-making.
“This is a further step towards more sustainable logistics. A tangible illustration of our desire to create positive change for our employees, customers and society,” added Jean-Christophe Machet.
Projections for 2022/23
Geopolitical and economic tensions, as well as inflation, will weigh on FM Logistic’s operating result and revenues. This consequence will be due to its strong presence in Eastern Europe. However, FM Logistic’s business model, coupled with strong commercial dynamics and reinforced cost control, will enable the Group to mitigate the impact and maintain the roadmap envisaged by Powering 2030.
The forecasts for FM Logistic Ibérica are for expansion, new customers and the construction of new modules. A clear example is the 18,000 m2 expansion of the Illescas warehouse and new 660 m2 offices in the same location. These works are scheduled for completion in early 2023.
Finally, FM Logistic Ibérica will acquire labeled refrigerated semi-trailers to service the international transport of products that need to be at a controlled temperature. These refrigerated semi-trailers will be destined for FM Logistic’s customers in the food sector. They will be mainly destined to the international transport of temperature-controlled food products such as pastries and chocolates; refrigerated products such as fruits and vegetables and frozen products. These vehicles will be dedicated for international transport services to our customers in the areas of Northern France, Benelux, Germany and Northern Italy.