ID-Logistics-warehouse

French contract logistics specialist ID Logistics saw group revenue increase by 10% last year to reach €1.53bn ($1.68bn), as its international operations took an increasing lion’s share of its business.

Full-year sales for its French division grew by 4.2% to reach €714.7m, while revenue from its international operations grew 15.5% to reach €819.5m, as it expanded its presence in continental European markets and made its first acquisition in the US.

The international growth also came despite the closure of its operations in South Africa in September.

“ID Logistics achieves a new dynamic year due to numerous start-ups. Year after year, our European footprint is confirmed, particularly in Spain but also in Germany, Benelux and Poland,” said Eric Hémar, chairman and chief executive.

“A new feature in 2019 is that in December we recorded our first sales in the United States, following the acquisition of the activities of Jagged Peak,” he added.

Completion of the €15m takeover brought in the Tampa-based logistics firm, which had revenue of $80m in 2018, employs 200 people and specialises in consumer e-commerce and multi-channel retail supply chains.

ID Logistics said the Jagged Peak business would come to represent as much as 20% of group sales and a significant cross-selling opportunity – one of Jagged Peak’s largest clients is Nespresso, for which it handles both B2B and B2C supply chains.

However, last year ID Logistics’ non-France growth was largely driven by “21 new contracts registered in 2019 and the full-year effect of the 16 start-ups in 2018”, with e-commerce once again the strongest segment.

This year will see the firm open a 47,000sq metre facility in France to manage the return of non-food items for discount retailer Lidl, a 23,000sq metre warehouse in the Netherlands to supply 70 stores in the region for gardening retailer Intratuin and a 58,000sq metre facility in Poland for US drinks behemoth Pepsi, which will serve as a central hub for the manufacturer’s Polish sales.

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  • Andreas Koût

    January 28, 2020 at 2:38 pm

    by the way if not known to you
    the ID Logistics subsidiary is a former ex Singapore Post company which went
    insolvency so surely for ID Log a buy more on the cheaper side.
    If this is the right approach to a booming e-commerce market like the US.
    We wouldnt have done it this way up and prefered to buy an real etablished e-commerce player.
    Once again this shows up that the french located companies are prefering
    to buy cheap. Does this really make sense and brings what it is envisaged to?
    More than doubts on this
    regards
    A.Kout
    Team Akclimited
    regards
    A.Kout
    Team Akclimited

    Reply
    • Bruno Verlinden

      January 29, 2020 at 10:59 pm

      Andreas, not sure which french companies buy more on the cheap side in your opinion but ID Logistics has the strategy to follow loyal customers to new countries and the move to the US was for sure a strategic wish but foremost the result of such a relation with Nespresso. ID Logistics has the know-how to transform this company into a growth engine and Nespresso knows very well why they supported this deal. Take care and kindness.

      Reply