Geodis hits record revenue in 2022, up 19% YoY to $14.6B

France-based logistics provider Geodis saw revenues climb to 13.7 billion euros ($14.6 billion) by the end of 2022, a year of record growth for the company. [caption id="attachment_96988" align="alignright" width="300"] (Photo: Geodis)[/caption] WHY IT MATTERS: Geodis’ full year 2022 results benefited from growth in its freight forwarding segment, expansion in the U.S., strategic investments and acquisitions, and successful initiatives to reduce carbon emissions, according to the company’s recent earnings report. THE BIG PICTURE: The freight forwarding division performed well in what the company called a “favorable market environment” with high freight rates for air cargo, the report stated. Despite a healthy year, the pandemic-era price boom for forwarders ended in the fourth quarter of 2022, resulting in the current market conditions, which the company described as “highly volatile.” BY THE NUMBERS: Geodis’ 2022 revenue of $14.6 billion marked a 19% rise year over year, as well as a 68% jump from 2019, according to the report. Earnings before interest and taxes (EBIT) reached $552 million, a 10% increase YoY, and 90% higher than in 2019. WHAT THEY’RE SAYING: The company’s third year in a row of record growth came in the face of a “challenging economic and geopolitical environment,” including the Russian invasion of Ukraine and COVID-19 restrictions abroad, Chief Executive Marie-Christine Lombard said in the report. “We will continue to pursue our growth dynamic in the service of our customers, the digitalization of our businesses and the implementation of our environmental commitments, which remain one of our key priorities,” Lombard added. STATE OF PLAY: The contract logistics division, which had prioritized business development in the U.S. in 2022, saw a sharp rise in revenues, both as a result of new customers and growth in volumes of existing customers. In Europe, contract logistics continued to grow, despite inflation causing reduced consumption after Q2, according to the report. NOTEWORTHY: Geodis’ decarbonization initiatives also contributed to a successful year, the company said. Customers have the option to use sustainable aviation fuel processed from biomass for shipments. For greener ground vehicles, Geodis has purchased 420 biogas or electric vehicles, scheduled for delivery early this year. The vehicles will primarily be used for last mile deliveries in the 40 largest metropolitan areas in France by 2024. FUTURE LOOK: The company’s “Ambition 2023” plan outlines an aggressive investment and acquisition agenda, which started in March 2022 with the acquisition of Singapore-based forwarder Keppel Logistics . The $80 million deal was designed to strengthen Geodis’ contract logistics and e-commerce services in Asia Pacific. In October, Geodis acquired Flushing, N.Y. headquartered Need It Now Delivers, a last-mile delivery provider, allowing the forwarder to expand its U.S. presence. The company also plans to acquire trans-o-flex, a German pharmaceutical and controlled-temperature product transporter. The purchase is expected to be completed in Q1 2023, according to the report.

Geodis hits record revenue in 2022, up 19% YoY to $14.6B

Freight forwarding and U.S. expansion key factors in 2022 performance

Phase 2 of EU customs security program launches

Sichuan Airlines to become first A321PCF operator in China

Related Posts

World Star signs 1st 737-400F deal with Saltchuk Aviation

Challenge Group prepares for 2nd 777-300ERSF delivery amid network expansion

First Chinese 777 conversion site emerges in Mammoth deal with STAECO

Sichuan Airlines to become first A321PCF operator in China

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password