Major investments and many new customer agreements in 2016
In 2016 Frode Laursen delivered a profit of DKK 21.5m before tax with a turnover of DKK1,854m – an increase on 6%. The company’s equity account for DKK 251m corresponding to a solidity of 44%.
Many new customer agreements combined with improvement measures will derive a positive effect in 2017.
Our employees have delivered a great performance Again with high quality and efficient operations. Their effort has resulted in the rentention of existing customers, as well as acquiring new customers starting-up in 2017.
In a strongly competitive market for logistics services, we are glad that our Nordic logistics system with multishare logistics solutions within FMCG is being chosen by more and more suppliers and wholesalers in the Nordic countries.
The core is multisharing of resources, in other words that FMCG suppliers share the same warehouse and transportation – and thereby earn unique process efficiency and the most eco-friendly solution.
It also results in environmental advantages since the sharing of warehouses and loaded trucks both reduce the energy consumption and the CO2 footprint. At the same time, we deliver a better service towards the FMCG wholesalers and stores across the Nordic countries, which can receive their consignments more efficiently and frequently.
The year of 2016 brought big investments, we acquired ground areas to secure the future expansion in Sweden and Finland. In total, we now have more than 460,000 sq.m. warehouse of our own. New expansions in Sweden have been initiated in 2017, where we will build additional 42,000 sq.m. warehouse.
Simultaneous, we are continuously investing in new eco-friendly trucks with, for example, bio diesel, HVO and gas as fuel. The safety of traffic is being enhanced with investments, among other things, in automatically emergency brakes and lane assist, which sounds an alarm if the driver crosses the road surface marking. All new trucks are equipped with EURO6-motors.
Digitization and employment of the newest technology had been brought into focus. Regarding digitization, we are making initiatives to improve the efficiency in the whole supply chain – for example, increased use of our TMS and FMS systems that provides online information from all trucks. Technologically, we are examining the use of further automatic solutions at our warehouses.
Expectations for 2017
It is our strategy to continue our growth in the Nordic countries on warehouse as well as transportation solutions.
We see visible signs of a better balance between the supply of high quality services within logistics and the demand for the same. We see a great competitive advantage in the fact that we have a large share of own trucks and drivers compared to our competitors.
Our biggest challenge is therefore to secure the capacity, including all type of employees but especially qualified drivers. Our internal training of all drivers, regardless of nationality, contributes to improved safety and good transport quality for our customers.
Our ongoing investments in technology and IT will contribute to give us an additional competitive advantage.
We therefore expect net sales and earnings to increase in 2017.
ABOUT THE FRODE LAURSEN GROUP
The Frode Laursen Group*) delivers transport and logistics solutions in the areas of:
- FMCGs (dry, chilled and frozen goods)
- Building materials
- Petrol and oil distribution, as well as hazardous goods
- Recycling transport services
Net sales for the whole Group in 2016 totalled DKK 2,500 million. We have more than 2,300 employees, of which 1,300 are in Denmark. Every day we use 750 of our own trucks and 450 hauliers.
*) The Frode Laursen Group comprises not only Frode Laursen A/S, but also IN-STORE A/S and the part-owned companies Skanol A/S and Agri-Norcold A/S.