Aug

Imperial Logistics achieves 21% growth in revenue

2013-08-22 08:14
Cobus Rossouw, chief integration officer, Imperial Logistics: “During the last year we have gained multiple new contracts, many of which with leading multi-nationals across the industry spectrum. We also expanded our engagements with various African businesses.”

Imperial increased its revenue in its logistics businesses to R34-billion for the financial year ending 30 June 2013, achieving 21% growth.

According to a statement issued by the company, the European and African divisions contributed almost equally with revenue from African countries outside South Africa contributing almost 15% to total revenue.

Within South Africa, Imperial Logistics recorded a revenue growth of 12,4% and operating profit growth of 21,4% for the second half of the financial year. The results for the first half of the financial year were adversely impacted by labour action in September and October 2012.

The businesses in the rest of Africa, including CIC, continued to grow and perform well, increasing turnover and operating profit by 23% and 45% respectively.

The new Imperial Health Sciences performed ahead of expectations and offers opportunities for further expansion across the continent in the pharmaceutical industry.

The acquisition of 49% of MDS Logistics plc in Nigeria was effective from 26 April 2013. According to Imperial, this acquisition provides an excellent platform for further growth in the region and is consistent with the company’s strategy of focusing on consumer opportunities in Africa and following its customer base on the continent while creating sustainable partnerships in certain markets.

“We’ve simplified our South African business through consolidation of core expertise thus leveraging scale, synergies and best-practice across businesses to further improve our service offerings to our clients’ says Cobus Rossouw, chief integration officer, Imperial Logistics.

“During the last year we have gained multiple new contracts, many of which with leading multi-nationals across the industry spectrum. We also expanded our engagements with various African businesses.’

The acquisition of some of the RTT businesses resulted in strategic entry into the pharmaceutical value chain and has bolstered Imperial’s Retail Logistics footprint.

Imperial Logistics concluded two further strategic acquisitions in South Africa, both of which extend its specialist logistics capabilities in target industries. The first was LTSKenzam further expanding chemicals logistics capabilities and KWS Carriers, bolstering the bulk commodity service capabilities.

Post the disposal of Megafreight, Imperial Logistics is actively building partnerships to offer international logistics services as an integrated part of outsourced value chain management.

Imperial Logistics International remains well positioned in attractive niches in the European logistics industry. Despite the economic crisis in Europe, the division’s prospects are positive.

“We’re excited about the application of our European expertise in the domestic automotive supply industry where we have been awarded our first major contract.  Other opportunities to leverage our European multi-modal logistics management capabilities will be leveraged as part of our new partnership with Transnet Freight Rail,’ says Rossouw.

The ‘˜partnership’ to which Rossouw refers is a Memorandum of Understanding signed between Transnet Freight Rail (TFR), a division of Transnet SOC Limited and Imperial Logistics aimed at exploring multimodal collaboration opportunities within the logistics and transport sector.

The initiative brings together TFR’s efficiency in long haul rail transportation with Imperial Logistics’ road freight logistics, distribution and end-to-end value chain management expertise.

This breakthrough partnership will facilitate joint development of multimodal logistics services in support of Transnet’s ‘˜road to rail’ strategy which will reduce the adverse impact of rail-friendly freight on the national road infrastructure and reduce the cost of logistics for cargo owners throughout Southern Africa.

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