ID Logistics: continued profitable growth in the first half of 2023

All key financial figures show growth in the first half of 2023

• Sales: +10.3% to 1,289 million euros
• Underlying EBITDA: +17.5% to 192.4 million euros (+90 BPS)
• Underlying operating result: +13.5% to 47.9 million euros (+10 BPS)
• Cash flow from operating activities: +33.9% to 147.6 million euros after operating investments
• Debt ratio reduced to 1.8x EBITDA before IFRS 16

Completion of the Spedimex acquisition in Poland, opening of a site in the UK and acceleration of business synergies

ID Logistics (ISIN: FR0010929125, Ticker: IDL), one of the leading contract logistics companies in Europe, publishes its results for the first half of 2023: Sales increased by 10.3% to EUR 1,289 million and underlying EBITDA by 17.5% to 192.4 million (+90 BPS).

Eric Hémar, Chairman and CEO of ID Logistics, comments: "The first half of 2023 was satisfactory for ID Logistics as the Group once again demonstrated its ability to realise profitable growth. The company has finalised the acquisition of Spedimex - a transaction that is already promising in terms of business synergies and access to new customers: the group will become the leading contract logistics provider in Poland, a fast-growing market. ID Logistics has also opened a location in the UK and is now present in 18 countries. In addition, the company has seen significant business development with US and European blue-chip companies - particularly in the e-commerce and fashion sectors - and will be able to further accelerate its growth from the second half of 2023."

In millions of euros                   H1 2023  H1 2022(1)  Change
Sales                       1,288.6         1168.4             +10.3%
Underlying EBITDA         192.4        163.7       +17.5%
As % of sales                  14.9%          14.0%      +90 BPS

Underlying
operating result                47.9  42.2    +13.5 %
As % of sales                 3.7 %  3.6 %  +10 BPS

Cash flow from operating activities
after operating investments      147.6  110.2  +33.9 %

Net financial debt /
Underlying EBITDA(2)        1.8x  2.4x  

(1) In accordance with IFRS 5, the business activities of ID Logistics in Russia were accounted for as discontinued operations in 2022 and the data published on 30 June 2022 has been adjusted for reasons of comparability.
(2) Before IFRS 16.

SALES GROWTH OF 10.3 % (+4.3 % ON A COMPARABLE BASIS)

ID Logistics generated sales of EUR 1,288.6 million in the first half of 2023. This corresponds to an increase of 10.3% (4.3% on a like-for-like basis) compared to the first half of 2022, which already saw strong growth of +15.3% on a like-for-like basis compared to the previous six months.

• Outside France, sales growth continued: sales rose by 17.7% to € 877.3 million in the first half of 2023. This growth includes three months of sales from Kane Logistics (consolidated since 1 April 2022) and one month of sales from Spedimex (acquired in Poland and consolidated since 1 June 2023). Adjusted for these changes in the scope of consolidation and a generally unfavourable currency effect over the past six months, growth reached +8.3% compared to the first half of 2022, which had already seen a significant increase of +21.9%.
• In France, sales in the first half of 2023 totalled EUR 411.3 million (-2.7%), which is attributable to lower consumption volumes in the food and non-food sectors.  

UNDERLYING EBITDA INCREASES BY 17.5% (+90 BPS) TO 192.4 MILLION EURO

The Group further improved its operating profitability in the first half of 2023: Underlying EBITDA increased by 17.5% to EUR 192.4 million. The underlying EBITDA margin increased by 90 basis points to 14.9%:

• Outside France, underlying EBITDA increased by € 27.5 million to € 130.7 million in the first half of 2023. The underlying EBITDA margin rose by 120 basis points to 14.9%. This is due to productivity increases from projects commissioned in 2021 and early 2022 as well as cost control for newly opened locations at the end of 2022 and in 2023, including the costs for the new opening in the UK.
• In France, the underlying EBIDTA remained stable at € 61.6 million in the first half of 2023. Good management of variable costs to adjust for lower half-year sales enabled the underlying EBITDA margin to increase by 50 basis points to 15.0%.

UNDERLYING OPERATING RESULT INCREASES BY +13.5% (+10 BPS) TO EUR 47.9 MILLION EURO

After taking into account depreciation in connection with equipment used to fulfil increasingly demanding technical requirements, the underlying operating result rose by 13.5% to EUR 47.9 million. The operating margin before special items therefore rose by 10 basis points to 3.7% in the first half of 2023. This includes a decrease of 10 basis points to 3.9% for the business activities in France and a decrease of 20 basis points to 3.6% for the international business. The Group points out that its business activities are usually more profitable in the second half of the year.

GROUP SHARE OF CASH FLOW OF 16.4 MILLION EURO

The Group's share of net profit amounted to EUR 16.4 million in the first half of 2023, a slight decrease of EUR 1.9 million compared to the first half of 2022. This includes net financing costs of EUR 11.9 million (an increase of EUR 7.6 million compared to the first half of 2022), which are mainly due to the effects of the change in the scope of consolidation associated with Kane Logistics (financing of the acquisition and business activities over six months in 2023 instead of three months in 2022). Other financial expenses totalling EUR 9.7 million mainly relate to the discounting of lease liabilities (IFRS 16), which will increase in line with the expansion of the Group.

CASH GENERATION FROM OPERATING ACTIVITIES INCREASES BY 33.9

The Group's business activities generated cash of EUR 147.6 million in the first six months, which represents an increase of 33.9% compared to 2022 after taking into account operating investments. These investments of EUR 31.8 million were higher than in the first half of 2022, with 80% attributable to the commissioning of new locations.

In the first half of 2023, ID Logistics finalised the acquisition of Spedimex in Poland, which was partially paid in cash for a net amount of EUR 15.6 million, and made an earn-out payment of EUR 6.7 million to the sellers of Colisweb. As a reminder, the acquisitions of Colisweb in France and Kane Logistics in the USA were completed at the beginning of 2022 for a total amount of EUR 247.7 million including acquisition costs. These various transactions were financed by a syndicated loan of EUR 400 million, which was finalised in the first quarter of 2022. The short-term portion of this loan was refinanced in the first quarter of 2023 through a new syndicated amortising loan, as the Group does not have to make any significant repayments until 2027.

Due to strict management and the good financial result in the first half of 2023, the debt ratio will fall to 1.8x EBITDA before IFRS 16 as at 30 June 2023.

OUTLOOK

In the short term, the Group is focussing on the success of new projects with blue chip companies and continuing to align its costs with customer demand.          

Over the past two years, ID Logistics has significantly diversified its business both in terms of regions and customer sectors and now has more global market access. In addition, the company's ability to support major global organisations has led to significant commercial developments that should ensure continued business growth.

Note: Management approved the interim financial statements on 30 August 2023 and the review of the consolidated financial statements has been completed. The qualified audit report will be published as soon as the necessary steps for the publication of the interim report have been completed.

NEXT RELEASE
Sales in the third quarter of 2023: 24. October 2023 after close of trading.

ABOUT ID LOGISTICS:

ID Logistics Group, managed by Eric Hémar, is an international contract logistics service provider with global sales of EUR 2.5 billion in the 2022 financial year. ID Logistics operates 375 locations with over 8 million square metres of warehouse space in 18 countries in Europe, North and South America, Asia and Africa and employs around 30,000 people.
Customers from the retail, e-commerce and consumer goods sectors rely on ID Logistics' technology-based solutions. Since its creation in 2001, the group has developed a social and environmental approach through a series of pioneering projects and is firmly committed to an ambitious CSR policy. ID Logistics is listed on the regulated market of Euronext Paris (Compartment A) (ISIN code: FR0010929125, ticker: IDL).

Contact:

Yann Perot - CFO
Tel: +33 (0)4 42 11 06 00
yperot@id-logistics.com
INVESTOR RELATIONS CONTACT
NewCap
Tel: +33 (0)1 44 71 94 94
idlogistics@newcap.eu