Annual reports

Annual results 2022/23

FM Logistic records another year of sustained growth, result of a sustainable omnichannel strategy and structuring international investments choices

On July 11, 2023

In a difficult international context, FM Logistic shows its resilience thanks to its sustainable omnichannel strategy and continuous search for operational efficiency, which enabled a respective increase of 13% in its turnover, which stands at €1,713 million in revenue, and of 15% of its operating profit.

The share of turnover generated outside France now exceeds 65% of total turnover. Commercial performance supports the Group’s growth with €262 million of new contracts.

CSR initiatives are on the rise with tight management of the implementation of 75 priority energy optimization actions.

New synergies, guarantee of simplicity and efficiency between FM Logistic and Batilogistic: a simplified governance and close collaboration to reduce the carbon footprint linked to the construction and operation of sites. In 2022, FM Logistic reduced carbon emissions in its warehouses by 26.6%.

FM Logistic publishes today its financial results for the year ended March 31, 2023. Full audited results are available in the annual report. During this fiscal year, the revenue increased to €1,713 million, rising of 13% compared to the previous year. Operating profit also increased by 15% and the group cash strengthened, thanks to a prudent debt strategy. Finally, the substantial investments to implement the company’s sustainable development policy bring the group closer and closer to its 2030 objectives.

In a context marked by the war in Ukraine, the rise in energy costs, and record inflation levels in many countries where the Group operates, this double-digit growth is the result of a good commercial performance in all territories and enhanced operational efficiency, allowing the renewal of its contracts. These two elements illustrate the resilience of the company.

The execution ability, optimized by the introduction of greater simplicity in the decision-making bodies, participated in energizing the Group. The reinforced synergies within the FM Logistic-Batilogistic duo are a major and differentiating asset that reassures local communities and allows to imagine the warehouses of the future.

“The past year demonstrates the relevance of our omnichannel and sustainable supply chain development strategy, but also FM Logistic’s ability to adapt and cope with changes in the international context. Many new customers now trust us to take charge of all their distribution channels, both in France and internationally. More than ever, our strategy resonates with environmental issues: sustainability and sobriety must be at the center of logistics activity, as demanded by our customers and our shareholders. Our ambition is to continue to carry the vision of a sustainable supply chain and to support its realization through the digitalization and automation of our processes.”, said Jean-Christophe Machet, CEO of FM Logistic.

Significant growth generated by omnichannel and international

In 2022, FM Logistic won numerous omnichannel contracts: 20% of turnover is now achieved thanks to these activities. The significant growth of this financial year also comes from investments made by the Group in high-potential international markets, such as Vietnam and India (30% growth recorded in these two markets in 2022), but also in Brazil, a country in which the Group has recorded net improvement in results since January. More specifically in India, the Group is experiencing extraordinary development, with 5,000 employees in 2022. With €262 million in new contracts, commercial performance is supporting the Group’s growth in its historical segments, FMCG and retail, while strengthening the industrial segment. 65% of turnover is now generated outside France, up by 19%, demonstrating the Group’s desire to support its customers internationally.

Acceleration towards sustainable logistics

This year was marked for FM Logistic by great progress, in line with its Powering 2030 strategic plan. Its ambitious CSR roadmap, aiming for carbon neutrality for all its sites by 2030 and a totally secure working environment enabling the development of its teams, has been perfectly followed despite the crisis context. Regarding real estate and construction, several structuring decisions were taken, including an increase of the height of buildings to reduce their footprint (a “High Height” warehouse allows to avoid 10% of CO₂ per pallet), or the choice of wooden frames. Many actions have been taken at a global level regarding energy savings, energy production and the transition to greener energies, enabling FM Logistic to reduce carbon emissions in its warehouses by 26.6% in 2022.

Highlights of the Group’s strategic priorities

One year after announcing its goal of carbon neutrality in all its sites by 2030, FM Logistic is renewing its commitments to energy sobriety: in 2022, FM Logistic became the first logistics company to set up a hydrogen station in Spain. Located in Illescas, the station produces 45 kg of green hydrogen per week and provides the equivalent of the consumption of 18 forklifts operating 12 hours a day.

In its desire to develop omnichannel and in a context of more complex sales channels, FM Logistic sets up “control towers” for several customers, in France and abroad, to manage the supply chain in an efficient and sustainable way.

Automation acceleration: FM Logistic is continuing the automation of its warehouses with, for example, the deployment of 46 Locus robots on the Wiskitki platform in Poland. On this 16,000 m² site, robots support teams in processing parcel orders.

FM Logistic strengthens its activities with industrial customers, in a desire to actively participate in the reindustrialization of France. For example, FM Logistic was chosen by the French ball bearing manufacturer NTN-SNR to manage the downstream logistics of its industrial flows from its warehouses in Annecy and Saint-Vulbas.

These improving results and the reinforced financial solidity of the Group thus give it all the means to continue its investments in favor of decarbonization and also the transformation of its activities thanks to digitalization and automation. In line with the Powering 2030 roadmap, the innovations put in place serve both to increase operational performance at the service of customers and to improve the safety and well-being for the teams at the heart of the company. These initiatives will enable the Group to double its turnover to €3 billion by 2030 by focusing on omnichannel commerce, urban logistics and sustainable development.