ID Logistics: Continued Good Performance in the First Half Of 2022

Improvement in all financial metrics in the first half of 2022

• Revenues: +32.2% to €1,181 million (+15.3% like-for-like)
• Underlying operating income: +52.7% to €42.3 million
• Cash flow from operations: +54.2% to €111.0 million after operating investments
• Post-acquisition financial debt: limited to 2.4x underlying EBITDA pre IFRS 16

ORGON, France--(BUSINESS WIRE)--Regulatory News:

ID Logistics, (ISIN: FR0010929125, Mnémo: IDL) (Paris:IDL) one of the European leaders in contract logistics, announces its 2022 half-year results with revenues up 32.2% to €1,181 million and underlying operating income of €42.3 million, up 52.7%.

Eric Hémar, Chairman and CEO of ID Logistics, commented: « As in the previous semesters, ID Logistics has once again recorded strong growth in all its financial metrics. The good commercial and financial performance we achieved in the first half of 2022 are the result of our organic growth, our ability to support our customers and the relevance of our three recent acquisitions. In a demanding context, ID Logistics is well positioned to pursue profitable growth in the second half of 2022. »

In €m	H1 2022	H1 2021	Change
Revenues	1,180.6	893.1	+32.2%
Underlying EBITDA	165.2	117.9	+40.1%
As a % of revenues	14.0%	13.2%	+80 bps
Underlying operating income	42.3	27.7	+52.7%
As a % of revenues	3.6%	3.1%	+50 bps
Consolidated net income	18.3	12.9	+41.9%
As a % of revenues	1.6%	1.4%	+20 bps
Cash flow from operations after operating investments	111.0	72.0	+54.2%

ANOTHER HALF-YEAR OF SUSTAINED REVENUE GROWTH AT +32.2%

ID Logistics ended the first half of 2022 with revenues of €1,180.6 million, up 32.2%.

This performance includes the scope effects following the acquisition of GVT in the Benelux, Colisweb in France and Kane Logistics in the United States, as well as a favourable currency effect over the half-year. Excluding these items, business growth remains strong with half-year revenues up 15.3% on a like-for-like basis.

- In France, ID Logistics reported a 12.3% increase in revenues to €422.9 million in the first half of the year. Excluding the effect of the consolidation of Colisweb, acquired in January 2022, growth was +6.1% in the first half of 2022 compared with the first half of 2021, which was already up by +9.5%.

- In other countries, revenues rose sharply, +46.7% in the first half of 2022 to €757.7 million. This includes revenues from GVT, acquired in the Benelux in December 2021, and from Kane Logistics, acquired in the United States on March 31, 2022. Excluding the positive effects of consolidation and currency during the first half of the year, growth remains strong with an increase of +21.9% on a like-for-like basis.

UNDERLYING OPERATING INCOME UP 52.7% TO €42.3 MILLION

The Group continued to improve its operating profitability, with underlying operating income up 52.7% to €42.3 million from €27.7 million in the first half of 2021, representing an underlying operating margin of 3.6%, up 50 basis points:

- In France, underlying operating income continued to grow, reaching €16.9 million in the first half of 2022. It has improved by 40 basis points thanks to the good productivity increase of the projects started in 2021, and to the accretive effect of the integration of Colisweb.

- In other countries, underlying operating income rose sharply to €25.4 million in the first half of 2022 from €14.2 million in the first half of 2021. It increased by 70 basis points to 3.4% thanks to the accretive contribution of acquisitions (6 months for GVT and since April 1, 2022 for Kane Logistics) and to the good increase in productivity of the projects started in 2021.

GROUP SHARE OF NET INCOME UP 41.9% TO €18.3M

Net income for the first half of 2022 includes acquisition-related costs of €2.2 million in non-current expenses and an increase in financial expenses of €4.7 million related to the financing of recent acquisitions and operating investments made to start up new sites.

Overall, the Group's share of net income for the first half of 2022 was €18.3 million, representing growth of 41.9% compared with the first half of 2021.

GOOD CASH GENERATION FROM OPERATIONS

Operating investments, mainly related to the launch of new sites, decreased to €23.3 million in the first half of 2022 compared to €41.0 million in the first half of 2021, which had experienced a post-Covid catch-up effect. This decrease has offset the slight erosion of working capital resources and, in the end, cash flow from operations was €111.0 million, up 54.2% compared with the same period in 2021.

MAINTAINING CAPACITY FOR INVESTMENT AFTER ACQUISITIONS

After the acquisition of GVT in the Benelux in December 2021, ID Logistics finalized during the first half of 2022 the acquisitions of Colisweb in France and Kane Logistics in the United States for a total of €247.7 million, paid in cash including acquisition costs. At the same time, the Group refinanced part of its debt with a new syndicated loan of €400 million and a revolving loan of €65 million, which has not been used yet. After these operations, net financial debt excluding IFRS 16 amounts to €354.5 million, a level under control at 2.4x underlying EBITDA pre IFRS16 (3.1x post IFRS16).

OUTLOOK

Following on from a dynamic first half of 2022 and on the strength of the good commercial and financial performances recorded, ID Logistics intends to maintain its pace of development and remains focused on increasing the productivity of recent projects and controlling start-ups in 2022. The Group is also cautious about the evolution of the macro-economic situation and pays attention to the needs of its customers.

Now that the integration of recent acquisitions has been completed, ID Logistics is focusing on the opportunities for development linked to these new synergies.

Finally, ID Logistics reminds that its activities traditionally benefit from a more favourable profitability in the second half of the year.

Additional note: The Board of Directors approved the interim financial statements on August 31, 2022 and the review procedures for the consolidated financial statements have been completed. The limited review report will be issued after completion of the procedures required for the release of the half-year financial report.

NEXT REPORT

Q3 2022 Revenues: October 24, 2022, after market close.

ABOUT ID LOGISTICS

ID Logistics managed by Eric Hémar is an international contract logistics group, with revenue of €1,911 million in 2021. ID Logistics manages 360 sites across 18 countries, representing nearly 8.0 million square meters of warehousing facilities in Europe, America, Asia and Africa, with 28,000 employees. With a client portfolio balanced between retail, industry, detail picking, healthcare and e-commerce sectors, ID Logistics is characterized by offers involving a high level of technology. Developing a social and environmental approach through a number of original projects since its creation in 2001, the Group is today resolutely committed to an ambitious CSR policy. ID Logistics is listed on Compartment A of Euronext’s regulated market in Paris (ISIN Code: FR0010929125, Ticker: IDL).

APPENDIX

• Simplified statement of income

(€m)	H1 2022	H1 2021
France	422.9	376.7
International	757.7	516.4
Revenues	1,180.6	893.1
France	16.9	13.5
International	25.4	14.2
Underlying operating income	42.3	27.7
Amortization of customer relationships	(1.7)	(0.6)
Non-recurring expenses	(2.2)	-
Financial result	(10.6)	(5.8)
Income tax	(8.3)	(6.8)
Share in income of associates	0.7	0.3
Consolidated net income	20.2	14.8
o/w attributable to ID Logistics’ shareholders	18.3	12.9

• Simplified statement of cash flows

(€m)	H1 2022	H1 2021
Underlying EBITDA	165.2	117.9
Change in working capital and others	(15.8)	0.0
Other changes	(12.8)	(4.9)
Net investments	(23.3)	(41.0)
Net cash generated/(used) by operating activities	111.0	72.0
Acquisition of subsidiary	(247.7)	-
Net financing costs	(4.4)	(2.1)
Net issuance of financial debt	256.9	1.0
Leasing payments	(105.6)	(75.0)
Other changes	(0.8)	(0.3)
Increase (decrease) in cash and cash equivalents	+9.4	(4.4)
Cash and cash equivalent – beginning of period	157.0	144.0
Cash and cash equivalent – end of period	166.4	139.6

Definitions

• Like-for-like change: change excluding the impact of:

- acquisitions and disposals: the revenue contribution of companies acquired during the period is excluded from the same period, and the revenue contribution made by companies sold during the previous period is also excluded from that period;
- changes in the applicable accounting principles;
- changes in exchange rates (revenues in the various periods calculated based on identical exchange rates, so that the reported figures for the previous period are translated using the exchange rates for the current period).

• Underlying EBITDA: Underlying operating income before net depreciation of property, plant and equipment and amortisation of intangible assets
• Net financial debt: Gross debt plus bank overdrafts and less cash and cash equivalents
• Net debt : Net financial debt plus rent liabilities (IFRS 16)