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eComm powers growth for GXO

16 February 2022

THE NEWLY created 3PL, which spun off from XPO Logistics last year, has posted impressive financial results, with eCommerce and reverse logistics catching the eye.

GXO's eCommerce business saw revenue up 45% while reverse logistics revenue was up 28% in Q4 of 2021.

This fed into full year revenue of $7.9 billion, up 28%; including organic revenue growth of 15%; net income attributable to common shareholders of $153 million; and pro forma adjusted EBITDA1 of $633 million.

GXO chief executive officer Malcolm Wilson, said: “Following an immensely successful holiday peak season, GXO reported its highest-ever quarterly revenue and adjusted EBITDA for the fourth quarter of 2021. We delivered double-digit organic revenue growth in every quarter of 2021 and grew 19% in the fourth quarter.

“We see significant growth opportunities heading into 2022, as the tailwinds of e-commerce, automation and outsourcing continue unabated. Our new contract wins and sales pipeline are the highest they’ve ever been, which, along with our improved revenue retention rate, position us extremely well to deliver our 8% to 12% organic revenue growth target in 2022. Moreover, we continue to realise benefits from our 2021 acquisition in the UK which, in addition to two recent technology customer wins, has already achieved synergies of over $30 million, equivalent to approximately 5% of its sales.

“With this clear and consistent momentum, we are raising guidance for the full-year, and we intend to outline our long-term targets to the investment community later this year.”