News / Europe 2021 results show some growth as Flexport battles rising costs

Flexport’s European and Asian entities recorded a €7.3m profit in 2021, but head of Europe Doug Brown has indicated that such a number may not be reached this year.

Reports that Flexport is to fire some 950 staff, (30%) was not confirmed by the company, but it has reassured its workers in Europe that its restructuring “would have limited impact on the European employee base and our operations in the region”.

Mr Brown said: “Our CEO, Ryan Petersen, has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability. Flexport‘s European division has seen tremendous growth… We are proud to be a trusted logistics partner to businesses of all sizes in Europe and we are incredibly optimistic about Flexport’s growth in the region.”

Flexport has indeed seen growth, according to its European/APAC accounts, seen by The Loadstar – but so have expenses. It has not filed its 2022 results, but accounts for the year ending 31 December 2021, which include its Asia Pacific entities, show that while turnover rose 106% from 2020, to €278m, expenses rose 112% in the same period, to €267m. The €7.3m net result was down from €7.9m a year earlier.

Breakdowns of air and ocean results are not available for the EMEA region, but the accounts do show that in the APAC region in 2021, ocean freight turnover was some €92m, and air was €42m, while trade finance netted €1.1m. Total net turnover from freight and trade finance services in EMEA was €34.3m, up from €21m a year earlier. APAC turnover was €243.6m, up from €113.2m.

The Europe-headquartered entity employed about 870 staff, according to the accounts. Salaries rose some 52% from 2020, to €55.7m. Office expenses were some €12m.

Flexport’s UK accounts are more up to date, as it filed its full year 2022 accounts in July. Turnover was £4.7m, up from £2.3m. Operating expenses rose from £2.2m to £4.4m, resulting in net profit of £180,425 – up from £101,659 a year earlier.

The UK filings also show that Flexport’s chief legal counsel, Chris Ferro – who has now left the company – was ousted as a director of its UK subsidiary last week.

Mr Ferro hit the headlines recently in a CNBC article which claimed he told former Flexport CEO Dave Clark his resignation had not been accepted and that he was to be fired instead. Mr Ferro also claimed Flexport would offer Mr Clark 2m shares in the company if he signed a separation agreement that included nondisclosure and non-disparagement clauses.