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ID Logistics in 2022: Strong Growth and a Solid Model

Progress in all financial and non-financial metrics in 2022:

  • Revenues: +31.9% to €2,481 million

  • Underlying operating income: +48.8% to €108.2 million

  • Cash flow from operations: +54.6% to €283.3 million after operating investments

  • Rapid post-acquisition debt reduction: leverage already reduced to 1.9x EBITDA pre IFRS 16

  • CSR approach: 2022 targets achieved, trajectory in line with the Group's roadmap

ORGON, France, March 15, 2023--(BUSINESS WIRE)--Regulatory News:

ID Logistics, (ISIN: FR0010929125, Ticker: IDL) (Paris:IDL), one of the European leaders in contract logistics, presents its 2022 results with revenues up 31.9% to €2,481 million and underlying operating income of €108.2 million, up 48.8%.

Eric Hémar, Chairman and CEO of ID Logistics, comments: « ID Logistics achieved another year of strong growth in all its financial and non-financial metrics, illustrating the strength and relevance of its model. We have added to this year the successful integration of our external acquisitions made at the beginning of 2022. Our European scope has also been streamlined with the opening of Italy and the closing of our activities in Russia. Finally, we now have a particularly dynamic growth driver in the United States and are now well positioned to support our major clients and prospects in the main geographical areas they choose for their deployment ».

In €m

2022(1)

2021(1)

Change

Revenues

2,481.3

1,880.6

+31.9%

Underlying EBITDA

372.8

264.5

+40.9%

As a % of revenues

15.0%

14.1%

+90bps

Underlying operating income

108.2

72.7

+48.8%

As a % of revenues

4.4%

3.9%

+50bps

Net income from continuing operations

48.7

34.1

+42.8%

As a % of revenues

2.0%

1.8%

+20bps

Cash flow from operations after operating investments

283.3

183.2

+54.6%

Net financial debt / EBITDA courant(2)

1.9x

0.9x

(1) In accordance with IFRS 5, ID Logistics' activities in Russia are accounted for as discontinued operations in 2022, and 2021 has been restated to be comparable
(2) excluding IFRS 16 as of December, 31

ANOTHER YEAR OF SUSTAINED REVENUE GROWTH AT 31.9% (11.9% LIKE-FOR-LIKE)

ID Logistics' 2022 revenues amounted to €2,481.3 million, up +31.9% and +11.9% on a like-for-like basis:

  • In France, revenues increased by +11.0% to €861.1 million in 2022. Adjusted for the scope of consolidation effect related to the consolidation of Colisweb (company acquired in January 2022), growth amounted to +5.3%.

  • Outside France, revenues reached €1,620.2 million, once again showing strong growth of 46.7%.

This includes revenues from GVT, acquired in the Benelux in December 2021, and from Kane Logistics, acquired in the United States in March 2022. Adjusted for these changes in scope of consolidation and a generally positive exchange rate effect, like-for-like growth was 16.5% compared with 2021, which had already seen a significant increase in activity of 23.1%.

UNDERLYING OPERATING INCOME UP 48.8% TO €108.2 MILLION

In 2022, the Group has continued to improve its operating profitability, with underlying operating income up 48.8% to €108.2 million from €72.7 million in 2021. The operating margin before non-recurring items increased by 50 basis points to 4.4% in 2022:

  • In France, underlying operating income continues to increase, reaching €37.3 million in 2022, or 4.3% of revenues, compared with €32.1 million and 4.1% in 2021. This improvement reflects the good management of the new sites started up and the successful integration of Colisweb. It also reflects the Group's ability to manage the unprecedented context of inflation, both in terms of costs and pricing.

  • Outside France, underlying operating income rose sharply to €70.9 million, representing a margin of 4.4%, compared with €40.6 million and 3.7% in 2021. The increased productivity of the projects started in 2021 offset the start-up costs associated with new projects and the opening of Italy as a new country.

INCREASE IN NET INCOME FROM CONTINUING OPERATIONS: +42.8% TO €48.7 MILLION

In 2022, ID Logistics has recorded non-recurring expenses of €4.3 million related to acquisition costs and fees, compared with €9.4 million in 2021. Financing expenses amount to €15.2 million in 2022, an increase in line with the acquisition debts. Other financial expenses of €15.7 million correspond mainly to the effects of discounting IFRS 16 rental debts, as a result of the Group's growth and acquisitions.

The effective tax rate remains stable at 25% between 2022 and 2021. Overall, net income from continuing operations will be €48.7 million in 2022, an increase of +42.8% compared to 2021.

DISCONTINUATION OF ACTIVITIES IN RUSSIA

During the 4th quarter of 2022, ID Logistics transferred its activities in Russia to its customers or other suppliers. Since the beginning of January 2023, the ID Logistics Group has no longer operated in this country. The different elements of this subsidiary's results are reclassified on a single line "discontinued activity" in 2022, the 2021 results have been restated to be comparable. The 2022 net result of these activities is a net loss of €-7.0 million (including €+1.3 million of current operating profit and €-8.3 million of restructuring costs, fees and asset depreciation) compared to a net profit of €+1.6 million in 2021.

GOOD CASH GENERATION IN 2022 AND CONTINUED STRONG INVESTMENT CAPACITY

After taking into account operational investments, the Group's activities generated €283.3 million in cash in 2022, up 54.6% compared to 2021. In line with ID Logistics' development model, the cash generated by mature activities has been largely reinvested to cover the cash needs of new sites, both in terms of start-up costs and operational investments.

In addition, after the acquisition of GVT Transport & Logistics at the end of 2021 for €67.7 million, the acquisitions of Colisweb in France and Kane Logistics in the United States were finalized in early 2022 for a total of €249.7 million, including acquisition costs. These transactions, as well as a balance of debt from previous acquisitions, were financed by a €400 million syndicated loan concluded during the first quarter of 2022. The short-term portion of this loan was refinanced in Q1 2023 by a new amortizing syndicated loan, so the Group has no significant repayment due date before 2027.

Thanks to strict management and the good financial performance achieved in 2022, the debt ratio, which had reached 2.6x current EBITDA preIFRS 16 at the time of the payment for the acquisition of Kane Logistics at the end of March 2022, has already fallen to 1.9x at the end of 2022.

CSR APPROACH: 2022 TARGETS ACHIEVED, TRAJECTORY IN LINE WITH THE GROUP’S ROADMAP

The Group's CSR strategy is based on three pillars covering the social, environmental and societal aspects of the company:

- A social focus promoting social promotion, inclusion and reduction of accidents in the workplace (objective of -40% in 2027 vs. 2018);
- An environmental focus reducing its energy intensity and waste (objective of a 40% reduction in the warehouse CO2 footprint (Scope 1&2) in 2030 vs. 2018);
- A commitment to the community through a strong local involvement.

In 2022, the 10 set goals were achieved and are in line or ahead of the roadmap defined for 2030.

In particular, ID Logistics is ahead of schedule on its two key objectives: reducing accidents in the workplace and reducing the company's carbon footprint, excluding offsetting.

Committed since its creation to a responsible and sustainable approach, the Group intends to continue its efforts to be among the reference players in terms of CSR.

OUTLOOK

ID Logistics is well positioned to continue the profitable development of its activities, by relying on its organic growth drivers in Europe (particularly in Poland and Italy) and the United States.

Thanks to its ability to rapidly reduce its debt, ID Logistics now has solid investment capacity and will remain alert to external growth opportunities.

Finally, the Group remains cautious about the evolution of the macro-economic situation and alert to the needs of its customers.

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 RELEASE

Q1 2023 revenues: April, 24 2023, after market close.

ABOUT ID LOGISTICS:

ID Logistics, managed by Eric Hémar, is an international contract logistics group with revenue of €2.5 billion in 2022. ID Logistics manages 365 sites across 17 countries representing more than 8 million square meters of warehousing facilities in Europe, America, Asia and Africa, with 30,000 employees.

With a client portfolio balanced between retail, e-commerce and consumer goods, ID Logistics is characterized by offers involving a high level of technology. Developing a social and environmental approach through a number of original projects since its creation in 2001, the Group is today resolutely committed to an ambitious CSR policy. ID Logistics shares are listed on the regulated market of Euronext Paris, compartment A (ISIN code: FR0010929125, Ticker: IDL).

APPENDIX

  • Simplified statement of income

In €m

2022(1)

2021(1)

Revenues

France

International

2,481.3

861.1

1,620.2

1,880.6

775.9

1,104.7

Underlying operating income

France

International

108.2

37.3

70.9

72.7

32.1

40.6

Amortization of customer relationships

(5.6)

(1.4)

Non-recurring expenses

(4.3)

(9.4)

Financial result

(30.9)

(13.5)

Income tax

(20.1)

(15.0)

Share in income of associates

1.5

0.7

Net income from continuing operations

48.7

34.1

Net income from discontinued operations

(7.0)

1.6

Consolidated net income

41.7

35.7

o/w attributable to ID Logistics’ shareholders

38.2

33.1

(1) In accordance with IFRS 5, ID Logistics' activities in Russia are accounted for as discontinued operations in 2022, and 2021 has been restated to be comparable.

  • Simplified statement of cash flows

In €m

2022(1)

2021(1)

Underlying EBITDA

372.8

264.5

Change in working capital and others

(9.3)

21.9

Other changes

(20.2)

(21.0)

Net investments

(60.0)

(82.2)

Net income from continuing operations

283.3

183.2

Acquisition of subsidiaries

(249.7)

(67.7)

Net financing costs

(15.2)

(4.3)

Net issuance (repayment) of debt

14.2

(96.0)

Other changes

(5.8)

(2.3)

Increase (decrease) in cash and cash equivalents

+26.8

+12.9

Cash and cash equivalent – end of period

183.6

156.8

(1) In accordance with IFRS 5, ID Logistics' activities in Russia are accounted for as discontinued operations in 2022, and 2021 has been restated to be comparable

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).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005744/en/

Contacts

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