Vos Logistics focuses on margin improvement after a difficult 2023

• In 2023, turnover decreased by 7.5 percent to €377 million, with a net loss of €2.2 million.
• Adjustment of capacities and organization led to cost reduction and more flexibility.
• Strategic reorientation of Home Delivery activities.
• In the transition to zero emission, 6 electric trucks and 2 charging plazas have been put into use.

After several years of growth, European logistics service provider Vos Logistics realized turnover of €377 million in 2023; a decrease of 7.5 percent against 2022. Due to a slumping economy, especially in the second half of the year, most activities were struggling with declining volumes. Home Delivery was substantially reduced. In addition, the organization has been adapted to lower volumes. As effects of the implemented cost reductions come in with a delay, the consolidated results before interest and tax (EBIT) decreased to €930 thousand (2022: €4 million), with a net loss of €2.2 million (2022: €1 million profit). Solvency remained stable at over 23%. Vos Logistics invested €43.5 million (2022: €27.5 million) in fleet renewal, sustainability and digital transformation.

Solutions

Warehousing, Benelux Distribution and Freight Management experienced a decline in demand, especially in retail and construction. Because the performance of Home Delivery lagged behind the objectives, this business line was phased out and integrated into Warehousing as an additonal service proposition. Through focussed interventions in the indirect organization, productivity has increased, and managerial lines shortened. As a result, flexibility was enhanced and the contribution margin increased.

International Transport

Due to the decreasing demand in the construction and petrochemical sectors and the loss of an automotive customer, 2023 was a challenging year for International Transport. This required adjustment of the capacity. In order to maintain a high level of service in a volatile market, the flexible shell was expanded through the use of subcontractors and multimodal solutions on long routes. The latter is also beneficial for our CO₂ footprint. The intake of new business from existing and new customers, in combination with the increase in the production of our own fleet, offers perspective for 2024.

Looking forward

“In order to meet the challenges facing the logistics sector, the company's returns must structurally improve”, says Ben Vos, CFO Vos Logistics. “Of course volatility of supply and demand as well as the energy transition, increasing and often conflicting regulatory pressure in Europe and availability of qualified personnel have a major influence on our result development. Costs, including wages, are rising every year, and the investment pressure in the zero-emission fleet and IT backbone will increase sharply. This requires clear choices”, Ben Vos continues.

The growth of the company will focus on Solutions: distribution, storage and freight management in the Benelux. Returns are generally better and more stable here. Through investments, acquisitions and the collaboration with a Belgian partner, the organization is well equipped, both in terms of storage locations and in terms of distribution and IT infrastructure. This provides an important basis for densifying our distribution network. In addition to reducing emissions, we are also reducing the number of transport movements in urban areas, which means that customers are served more efficiently while our impact decreases. 

In International Transport, we have to include cost increases and consequences of changing regulations into freight rates at an accelerated pace. We increasingly strive to serve shippers with customer-oriented transport and distribution services with a high service requirement. When needed we invest for customers who are willing to make long-term commitments. To adapt to fluctuations in demand, we will increase our flexible shell around our own fleet. 

In the transition to zero emission, an important step was taken in 2023 with the commissioning of six electric trucks for Benelux Distribution and two charging plazas. Further investments in electrification will also be made in 2024. Due to limitations in charging infrastructure, availability of and high investments in equipment, we will not be able to offer completely zero emission transports in cities in the near future. Nevertheless, we will take an important next step on the way there.

In addition, we made good progress with the implementation of a new warehouse management system. The goal is to have completely migrated by 2025. Furthermore, we will continue to innovate in automated warehousing. 

Frank Verhoeven, CEO Vos Logistics: “We keep a strong focus on excellent services and have made clear strategic choices for the future of our organization. Despite the fact that we are not yet seeing an economic recovery, Vos Logistics is well positioned to improve returns in 2024.”

The 2023 integrated annual report published today is available at https://www.voslogistics.com/en/vos-logistics/annual-report-2023