GXO Reports Fourth Quarter Revenue of $2.3 Billion

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GXO Logistics saw revenue grow 19% to $2.3 billion in the fourth quarter of 2021, the company announced on Feb. 15.

The Greenwich, Conn.-based contract logistics company reported net income attributable to common shareholders of $56 million, or 48 cents per diluted share, for the three months ending Dec. 31. That’s compared to $28 million, 24 cents, during the year – there’s a period when the business was operating within XPO Logistics.

Total revenue increased 28% to $2.3 billion from $1.8 billion the previous year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 21% to $167 million from $138 million a year earlier.

Wilson

“In the fourth quarter, our operations again generated the highest quarterly revenue and adjusted EBITDA in our history,” said Malcolm Wilson, CEO of GXO, during a call with investors on February 16. “We delivered double-digit organic revenue growth in every quarter of 2021. We ended the year on an accelerated trajectory with 19% growth. Additionally, we are seeing great momentum as we move forward into 2022. . »

GXO was launched as an independent company on August 2. XPO then split its contract logistics operations into its own stand-alone business to take advantage of the tailwinds of e-commerce, automation and outsourcing.

“We reached a successful peak for our customers in the fourth quarter, and we played our part in bringing holiday cheer to millions of consumers,” Wilson said. “We managed the labor market exceptionally well, including recruiting over 20,000 new team members. And we went through an elongated peak period that ran from mid-November to the end of December.

Wilson added that the company is helping customers navigate the ongoing e-commerce channel shift. The sales pipeline at the end of the fourth quarter hit an all-time high of $2.5 billion, with half of those opportunities coming from e-commerce. Wilson noted that over Thanksgiving weekend, overall levels of e-commerce activity increased 100% since the start of the quarter, with some facilities handling more than half a million outbound e-commerce units per day.

“GXO continues to capitalize on the age-old tailwinds of e-commerce, automation and outsourcing,” Wilson said. “In 2021, we won contracts with a total lifetime value of approximately $5 billion. This gives us a solid foundation to achieve our objective of organic revenue growth of 8% to 12% in 2022. And this growth is based on an already record year 2021.

GXO has also focused on automation as well as environmental, social and governance (ESG) solutions, both of which aim to improve safety and reduce the carbon footprint of global supply chains. The company plans to release its first sustainability report later this year.

GXO Logistics Q4 and 2021 Revenue by Transportation Topics on Scribd

“At GXO, we believe being a leader in logistics means making sure we take care of our partners, people and the planet,” Wilson said. “GXO brings significant environmental benefits to its customers through its pioneering work on ESG solutions.”

Wilson sees significant growth opportunities this year. He noted that the tailwinds of e-commerce, automation and outsourcing have continued unabated. The report showed that new customers acquired last year are expected to generate approximately $830 million in incremental revenue this year. The sales pipeline also reached an all-time high of $2.5 billion.

Road signs

Host Seth Clevenger talks to GXO’s Neil Shelton and Reverse Logistics Association’s Cathy Roberson about supply chain. Listen to a sample above and get the full program by heading to RoadSigns.TTNews.com.

Fourth-quarter earnings results were close to expectations of Wall Street investment analysts, who were looking for 56 cents a share and quarterly revenue of $2.05 billion, according to Zacks Consensus Estimate.

For the full year, GXO reported net income attributable to common shareholders of $153 million, or $1.32, on revenue of $7.9 billion. That compares with a net loss of $31 million, or a loss of 27 cents per share, on revenue of $6.2 billion in 2020.

GXO reported the strongest fourth-quarter revenue growth in e-commerce, omnichannel retail and consumer technology, as those operations grew 25.5% to $1.2 million from $958 million. dollars in the same period the previous year.

Year-over-year revenue increase in other businesses:

• Food and Beverages — 56.1% to $356 million from $228 million.

• Industrial and manufacturing — 3.7% to $251 million from $242 million.

• Consumer Packaged Goods — 35.4% to $260 million from $192 million.

XPO Logistics ranks #2 on the Transport Topics Top 50 list of largest logistics companies in North America and #3 on the TT Top 100 list of largest for-hire carriers.

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