Fergo Group raised its full-year organic revenue growth forecast on Sept. 17 following a first-half performance that exceeded expectations, driven by strong demand in North America and Brazil and resilience in its international service line.
H1 revenue reached EUR 187 million, up 6.2% organically at constant currency, while adjusted EBITDA came in at EUR 47.8 million, up 20 basis points year-over-year. The adjusted EBITDA margin came in at 25.5%, slightly below the prior-year level due to costs associated with scaling its logistics network. Net profit was EUR 25.7 million.
Management tightened its full-year organic revenue growth guidance to a range of 4% to 6%, up from the previous 3% to 6% target. The company maintains a long-term EBITDA margin target of 27% to 29% as the network matures.
International services, which account for roughly 65% of group revenue, grew 3.8%. Domestic services posted stronger growth at 12%. Warehouse and logistic services declined 7.2%, while special and other services grew 3%, or 6% at constant currency.
Regionally, Europe grew 4% year-over-year. North America and Brazil surged 18% (22% at constant currency), reinforcing their position as the group's second-largest revenue contributor. Asia, however, contracted 10% amid persistent weakness in China.
CEO Alessandro noted that "China continues to be soft and trading remains uneven across the luxury sector, with hard luxury and jewelry performing better than average." He added that the company does not expect a recovery in China during the second half of 2025.
Around 20% of Fergo's network remains in an early scaling phase, with locations typically reaching full operating potential within approximately 18 months of launch. Some sites are expected to contribute more meaningfully from Q3 and Q4 2026 onward, while others may not reach full capacity until 2026 to 2028. The Paris warehouse, part of the expansion push, is on track to open by the end of October.
The company added roughly 100 employees across its network during the first half, which weighed on margins by an estimated 1.5 percentage points. Value of goods shipped rose approximately 30%, well ahead of the 4% increase in shipment volumes, suggesting a shift toward higher-value items.
On the balance sheet, Fergo reported EUR 128 million in cash at period end and a net cash position of EUR 78 million. Lease repayments totaled approximately EUR 7.5 million, and maintenance capital expenditures ran at about 2% of revenue. A EUR 30 million dividend was paid during the period, with management indicating a FY2025 payout ratio of 56%, above its 40% floor.
Key metrics include a dividend yield of 4.05%, a price-to-earnings ratio of 13.08, and a return on equity of 25%.
Shares rose sharply in trading following the earnings release, climbing roughly 5.9% to $8.63 from a pre-call level near $7.91. The stock's 52-week range sits between $7.09 and $11.26.
Fergo operates logistics and express delivery services across Europe, the Middle East, Asia, and the Americas, with partnerships including Swiss WorldCargo and Swissport.
