Scan Global Logistics (SGL) announces plans for further acquisitions, focusing on key markets to drive growth following the release of its full-year results.
Scan Global Logistics (SGL) has unveiled its strategy to pursue additional acquisitions aimed at bolstering its presence in key markets. The decision follows the company’s full-year results announcement, where it highlighted its focus on accelerating geographical expansion through strategic acquisitions.
While SGL’s acquisition strategy has primarily focused on expanding its geographical footprint, the company now intends to target larger economies to achieve scale and volumes in key markets. The forwarder aims to ensure comprehensive coverage in all essential countries and markets to better serve its global clientele.
With the logistics industry still fragmented, SGL sees significant opportunities for consolidation, positioning itself as the preferred acquirer. Moreover, mergers and acquisitions will be leveraged to develop instant capabilities across high-touch non-cyclical verticals such as pharma, healthcare, automotive, aid and relief, and government and defense sectors.
To support organic growth, SGL has made substantial investments in sales support functions such as tender management, procurement, and supply chain development.
Despite reporting a decline in revenues, air volumes, and profits in its full-year 2023 results, SGL remains optimistic about its strategic direction. The company attributes the decline to challenging macroeconomic conditions, lower freight rates, and decreased air volumes. Furthermore, increased special items and amortisation costs, particularly related to acquisitions and IT expenses, impacted earnings before interest and tax (EBIT) performance.
Despite these challenges, SGL notes an improvement in gross profit margin from 14.1 percent in 2022 to 23.2 percent in 2023, signaling positive momentum amidst market headwinds.
