Scan Global Logistics (SGL) is positioning itself to become a major player in the industry, aiming to emulate the success of DSV as a key acquirer in mergers and acquisitions. The company announced a shift in its M&A strategy towards larger deals, focusing on countries with strong growth potential.
While SGL has historically used M&A to expand geographically, it now plans to target key markets to increase scale and volume, taking advantage of the fragmented nature of the industry. The company aims to maintain a balance between air and ocean freight, diversifying its tradelanes to ensure resilience in all segments.
Financially, Scan Global reported solid results, with revenues of €2.02bn ($2.38bn) and a gross profit of €469m, in line with expectations. The company recorded a loss of €33m due to costs related to the acquisition by CVC Funds, but excluding these costs, it achieved a profit of €21m.
In the air and ocean segments, revenues fell by 42%, but gross profit remained stable at €394m. Despite challenges in air freight tonnage, SGL managed to increase volumes in certain trade lanes to offset lower activity levels. The company’s unique hybrid business model combines fixed allotments with standalone capacity purchases to optimize air freight operations.
Road revenue decreased due to lower freight rates and over-inventory levels, but gross profit increased, especially in North America. Solutions revenue was impacted by reduced activity from existing customers.
Scan Global differentiates itself from competitors by offering customized logistics solutions tailored to each customer’s specific needs. The company forecasted an ebitda range of €195m to €215m for 2024 and aims for longer-term revenues of €5bn.
Despite its focus on sustainability, Scan Global faces a competitive market environment, with inventory levels normalizing and pressure on margins from customers. The company remains optimistic about its future growth prospects, leveraging its unique business model to stay ahead in the industry.
