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WARSAW - GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider with a market capitalization of $4.71 billion, has renewed its long-term partnership with Grupa Żywiec, a major Polish brewer and member of the HEINEKEN Group. The collaboration focuses on optimizing logistics operations, including production support and warehousing, at Grupa Żywiec’s Elbląg facility. According to InvestingPro data, GXO has demonstrated strong growth with a 19.75% increase in revenue over the last twelve months, positioning it well for this strategic partnership.
Since 2019, GXO has been integral in enhancing logistics for Grupa Żywiec, including the implementation of automated pallet scanning to improve productivity and safety. The logistics center, spanning 12,000 square meters, is certified to the highest standards of management, food safety, and environmental care, holding ISO 9001, 14001, and 2200 certifications. InvestingPro analysis indicates the company maintains a FAIR overall financial health score, with analysts expecting continued profitability this year.
Approximately 80 GXO team members at the site manage a range of supply chain solutions, from warehousing to shuttle service and delivery execution. The partnership has led to significant sustainability achievements, such as a 70% reduction in energy use through LED lighting and motion detectors, and the development of paperless storage processes.
Jean Luc Bessade, GXO’s Managing Director for Poland, Czech Republic, and Romania, expressed satisfaction with the renewed partnership, emphasizing the focus on safety and continuous improvement. Tomasz Klima, Supply Chain Director for Grupa Żywiec, also lauded the collaboration, noting GXO’s expertise in adapting to new economic conditions and improving efficiency.
GXO’s commitment to safety is evidenced by the Elbląg site’s five-year accident-free record, a testament to the effective implementation of GXO’s "Road to Zero" safety program and Grupa Żywiec’s SHE DAY program, which promotes safety and employee well-being.
The partnership aligns with GXO’s operations in Central Europe, where it has a 20-year history and employs around 6,500 team members across Poland, Czech Republic, Romania, and Germany. GXO specializes in tech-enabled fulfillment solutions and services, catering to various industries from e-commerce to FMCG.
This extension of the partnership between GXO and Grupa Żywiec is based on a press release statement, reflecting both companies’ dedication to efficient logistics and sustainable practices. Currently trading below its InvestingPro Fair Value, GXO shows promising fundamentals with positive net income growth expected this year. For deeper insights into GXO’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, GXO Logistics Inc. reported fourth-quarter adjusted earnings per share of $1.00, exceeding both Citi’s and the Street’s estimates of $0.90 and $0.89, respectively. The company’s adjusted EBITDA was $251 million, meeting expectations, although the future outlook for 2025 has been revised to reflect lower organic revenue growth of 3-6%, down from previous estimates. Meanwhile, Fitch Ratings downgraded GXO’s Long-Term Issuer Default Rating to ’BBB-’ from ’BBB’, citing increased customer attrition and challenges in integrating the Wincanton acquisition. The UK Competition and Markets Authority (CMA) has raised concerns regarding GXO’s acquisition of Wincanton, suggesting potential competition issues for large UK customers. Despite these challenges, Stifel maintains a Buy rating on GXO with a $66 price target, emphasizing the company’s strategic opportunities. TD Cowen also continues to rate GXO as a Buy with a $62 target, highlighting potential growth catalysts in the logistics sector. However, Citi has lowered its price target for GXO to $51 while maintaining a Buy rating, noting the company’s revised growth outlook. Investors are closely monitoring these developments as GXO navigates a complex global logistics landscape.
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