FM Logistic has published its financial results for the fiscal year ended 31 March 2021. The full audited results will appear in the annual report, which will be released early July. Revenues for 2020/21 amounted to €1,380 million, down 3.6% on a reported basis. They were affected by the economic downturn caused by Covid-19 in spring 2020 and a negative currency impact of €73 million. These factors were partly offset by a strong business recovery in the second half of the fiscal year. Revenues were up 1.5% on a currency-neutral basis.
Earnings before interest and taxes (EBIT) were €38.8 million, 8.7% lower than last year. The decrease mainly reflects higher costs associated with COVID-19 adaptation measures (€8.1 million), partially offset by cost-savings and cost-passing measures, and FX headwinds of €3 million.
Comparable EBIT was €41.8 million, a decrease of 1.6%.
“In an economy in turmoil, FM Logistic has proved remarkably resilient and relevant. Comparable revenue rose 1.5%. We signed €207 million of new contracts between April 2020 and March 2021, half of which are related to omnichannel and e-commerce. Our employees’ efforts helped millions of consumers get the products they needed. We’ll continue to build on our strong positions in the consumer goods and retail industries to help our customers implement sustainable omnichannel strategies,” said FM Logistic CEO Jean-Christophe Machet.
Growing demand for Omnichannel and e-commerce supply chain solutions in India
As with other businesses operating in India, 2020/21 revenues decreased due to Covid-19. However, at the same time, the on-and-off closure of bricks-and-mortar stores in 2020 accelerated the demand for omnichannel and e-commerce logistics. Despite the pandemic, FM Logistic added around 10 Lakh sq. ft. of warehousing space under its operations, a 20% increase in its warehouse footprint. According to Alexandre Amine Soufiani, MD – FM Logistic India, “FM Logistic India is proving its resilience in the face of Covid-19. We are carrying out our plans to expand in India and help our customers develop omnichannel strategies tailored to the Indian market.”
FM Logistic India was awarded new contracts in the FMCG, retail, omni-channel, e-commerce and pharma sectors. The most significant contracts being
● A leading pharmaceutical company has awarded FM Logistic India with a contract to manage the storage and handling of its coronavirus vaccines. FM Logistic India is responsible for the handling, re-packing and storage of approximately 2 Lakh vaccines at a temperature controlled facility.
● A global cosmetics brand has entered into a contract with FM Logistic to manage the in-plant raw material and finished goods warehousing operations at its manufacturing plant in North India. This is a round-the-clock operation to optimise the client’s supply chain.
● Contracts have been entered into with leading retail players to carry out warehousing operations for e-commerce fulfillment at the Multi Client Facility in Bhiwandi.
● On the distribution front, the logistics service provider won several contracts from leading players in the FMCG, industry and pharma sectors.
Infrastructure expansion
In India, FM Logistic is focussed on developing Grade A Multi Client Facilities (MCF) in the most important economic zones. By Q2 of 2021-22, the logistics service provider will commence operations at its Grade A Multi Client Facilities in Farrukhnagar (7 lakh sq. ft.) and Bhiwandi (4 lakh sq. ft.). The Farrukhnagar facility is the company’s first own MCF and among the first in India to combine LEED and FM Global certification. Both these facilities are strategically located and furnished with the best-in-class services. FM Logistic has also inked deals with Welspun One Logistics Parks and Lodha Developers to develop Grade A warehousing infrastructure in Bhiwandi and Palava, respectively.
Human Resource Development & Sustainable Initiatives
Training initiatives implemented in India have contributed to halving the employee attrition and occupational accident rates in 2020-21. The number of women employed by FM Logistic in warehouses has doubled. Efforts are consistently being made across all warehouses to ensure that all collaborators have a safe and secure working environment and access to hygienic working conditions. The group has also ramped up initiatives designed to reduce its environmental footprint. As part of its green distribution offer, FM Logistic India launched its first batch of electric vehicles in Bengaluru. The EVs will be used to carry out intra-city deliveries for WayCool, India’s fastest growing Agri-commerce company and a leading player in the FMCG and Food segment. FM Logistic India will be helping WayCool to carry out hyper local deliveries to local kirana stores, supermarkets as well as end consumers. FM Logistic India plans to deploy more EVs and cover more geographical areas under its green distribution network by this year end.
Future plans
FM Logistic India plans to expand its operations by another 30 lakh sq. ft. by the end of .2022-23, as announced in 2020. It will be setting up its own warehouses in the major consumption areas of the country like Mumbai, Bengaluru, Hyderabad, Chennai, Delhi. etc. All these upcoming facilities will be developed by NG Concept – FM Logistic’s real estate sister concern.