GXO Logistics has revealed that the deal it secured with Sainsbury’s in April to run warehouses for fresh and frozen goods is the largest annual revenue contract awarded in the company’s history.
Presenting GXO’s first quarter 2023 results, Malcolm Wilson, Chief Executive Officer, said:
“We’ve had a great start to the year, with strong top- and bottom-line results showcasing the strength and predictability of our business. In the first quarter, we delivered record revenue of $2.3 billion, up 12 percent year over year; $25 million of net income attributable to GXO; and $158 million of adjusted EBITDA, reflecting stellar operational performance.
“We’ve kicked off the year by signing exciting new partnerships and expanding relationships across multiple verticals and markets, with several transformative projects coming to fruition. Our new project with Sainsbury’s, a leading grocery retailer in the UK, is the largest annual revenue contract awarded in GXO’s history and represents nearly $1 billion in lifetime value. Through the end of April, we’ve secured over $800 million of incremental revenue for 2023, while bringing our pipeline to a near-record level.
“We saw increased outsourcing and automation in the quarter. Operational tech was up a record 64 percent year over year, and we are accelerating our deployment of artificial intelligence, which boosts productivity significantly. We also continued to make strong progress on our key initiatives: we are seeing the benefits of our central efficiencies program sooner than expected, and the integration of Clipper is largely complete, allowing GXO to accelerate the expansion of GXO Direct, our industry-leading shared-user solution, to the UK.
“Our first quarter performance, strong wins, growing pipeline, and excellent execution put us squarely on track for achieving our raised 2023 guidance and delivering our 2027 targets. It’s an exciting year, and we see significant opportunity to take share and grow our business.”
Separately, GXO has announced that it is partnering with Multiverse, a world-class training and coaching company, to launch a Data Academy to further increase data literacy and drive efficiency across the GXO organization, while providing a clear and rewarding career path for employees.
“We’re excited to work with Multiverse to launch this new training program for our team members in the U.K.,” said Mark Simmons, HR Director, UK & Ireland at GXO.
“Developing the right data skills in-house is crucial for our success because our customers expect us to deliver better value through greater insights and improved efficiency, driven by data. This new Data Academy is another example of how GXO is working every day to make our company an employer of choice, empowering employee growth through industry-leading salary and benefits, opportunities for training and development and a workplace that is safe and inclusive.”
GXO team members will be enrolled in Multiverse’s 15-month Data Fellowship program, receiving best-in-class training in data analysis that will enable them to clean, analyze and model data as well as to explain data and its uses to non-specialists. GXO has already enrolled 20 team members and believes those who successfully complete the program will be able to identify revenue and cost-saving opportunities for the company and its customers and boost data-driven decision-making across the company. Participants will also learn to use Tableau, an application that helps extract actionable insights from data.
Peppa Wise, Vice President GTM UK at Multiverse, said:
"Data is a key tool for unlocking growth, efficiency and opportunities. But data can only be harnessed with the right skills in place throughout an organisation – and apprenticeships are simply the best way to develop those skills. Through our partnership and our shared commitment to developing talent, GXO’s apprentices will get access to outstanding data training that happens through work and is guided by industry experts.”
In 2022, GXO was named one of the UK’s Top 100 Apprenticeship Employers. Throughout the country, GXO has more than 1,000 apprentices in warehouses and offices learning how to succeed in fields such as logistics planning and operations, business administration, human resources, finance and information technology