Norbert Dentressangle Group posted sales growth of 81 per cent, including the integration of Christian Salvesen, for the first nine months of 2008.
Organic revenue growth was consistent across the group, with a 6.5 per cent increase (+6.9 per cent at constant exchange rates) for the historic consolidation scope and a 6.4 per cent increase (at constant exchange rates) for Christian Salvesen businesses.
Sales for the logistics division grew by 113 per cent and accounted for 43 per cent of total revenue. Sales maintained a strong growth momentum in the historic consolidation scope (+7.9 per cent) and started, as from the third quarter, to show the effects of the turnaround of the former Christian Salvesen business units in France.
Sales for the transport division grew by 63 per cent overall, and by 5.7 per cent in the historic consolidation scope. “The slower pace of revenue growth observed since June 30 was attributable the group’s decision to reduce its vehicle fleet ahead of the expected slowdown in economic activity. This trend was further accentuated by the decrease in fuel costs,” said a trading statement.
In accordance with the group’s strategy which focuses on operating warehouse space under lease agreements, four distribution sites were divested in the third quarter, generating approximately €20 million (£15.7m) in net proceeds before tax. The sale, which “aims to enable the group to achieve higher flexibility and leaner operations”, also allowed it to reduce net debt by €45m, leading to a 12 per cent reduction in the estimated debt-to-equity ratio at September 30.
The statement added: “The group expects that full-year performance will be hampered by the deterioration in the business environment in the final quarter of 2008. The international situation will slow efforts to improve the performance of the former Christian Salvesen business units and, in particular, the turnaround of the United Kingdom transport business, which is currently undergoing restructuring.”
Norbert Dentressangle Group expects full-year like-for-like revenue to increase five per cent on 2007 proforma revenue (€3.083bn) and recurrent operating income to be slightly lower than the 2007 proforma figure of €91m. Operating income before amortisation of goodwill will be positively impacted by the proceeds from the sale of the four distribution sites and will be substantially higher than reported operating income in 2007 (€79.8m).
François Bertreau, chairman of the board, said: “We have shown our ability to adapt to a more challenging environment. Our historic consolidation scope held up well and turned in a healthy gain. Although the operational integration of Christian Salvesen is now complete, efforts to improve the performance of the newly integrated businesses have been temporarily affected by the economic downturn. I nevertheless remain confident in the group’s ability to leverage its strengths and to outperform our sector over the long term.”
