With 15 years of experience supporting Avon’s operations, GXO manages a modern facility in Garwolin (Poland), which serves as the company’s largest factory in Europe. This facility caters to over 50 markets across Europe, Africa, and Asia by providing warehousing and manufacturing support for Avon and its suppliers.
Additionally, it enables GXO to assist Avon’s omnichannel strategy, allowing the company to offer its products through various channels seamlessly. Moreover, GXO ensures Avon’s compliance with regulatory changes and legal requirements across multiple markets by labeling products accordingly.
Q3 results showcase good financial performance
In the third quarter, the company’s revenue experienced an 8% year-over-year increase, reaching $2.5 billion, with organic revenue also showing a growth of 3%.
Net income attributable to GXO reached $66 million, showcasing a significant uptick. Operating income saw a noteworthy 25% increase, contributing to a 49 basis points improvement in operating margins. Additionally, adjusted EBITDA climbed to $200 million.
The cash flow from operations in the third quarter of 2023 amounted to $243 million, marking a notable rise from $116 million in the same period in 2022. Free cash flow for the third quarter of 2023 was $191 million, a substantial increase from $47 million in the third quarter of 2022.
The updated full-year 2023 guidance includes an upgrade in adjusted diluted earnings per share from the range of $2.45-$2.65 to $2.55-$2.65. Adjusted EBITDA has also been revised upward from $725-$755 million to $730-$755 million. The outlook for organic revenue growth has been adjusted from 6-8% to 2-4%. The reiterated expectation is for free cash flow conversion to be approximately 30% of adjusted EBITDA.
“Our third quarter results reflect the resilience of our contractual business model as well as our high-caliber operational and financial execution. We delivered record revenue, year-over-year growth in net income attributable to GXO and adjusted EBITDA, consistent margins, robust cash flow from operations, and outstanding wins. We continue to take market share: through the third quarter, we have secured more than half a billion dollars of new business for 2024. While the macro environment is uncertain, we’re driving strong performance in new business wins, profits and cash flow.” said Malcolm Wilson, Chief Executive Officer of GXO.