Telefónica shoots up its logistics area by 30% with the pull of ‘ecommerce’ and new businesses | companies

Telefónica Servicios Integrales de Distribución, the division in charge of Telefónica’s logistics business, recorded a year of strong growth in 2021, supported by new businesses, exceeding the business figures achieved before the pandemic.

The former Zeleris registered a turnover of 453 million euros in 2021, almost 30% more than in the previous year, a period, yes, marked by the pandemic. In 2019, before the Covid crisis, the company’s revenue stood at 424 million. Sales increased during the past year from 273 to 362 million, while income from services increased from 79 to 89 million.

By activities, the company achieved a 33% growth in equipment sales activity in 2021 (mobile phones, SIM cards and other accessories). In turn, pure logistics and materials management activity also grew by 11.5% and 14%, respectively, in year-on-year terms.

The new activities contributed a volume of income of 19.4 million euros, and multiplied by nine the contribution of the previous year)

In its annual financial report, corresponding to 2021, Telefónica Servicios Integrales de Distribución indicates that, during the past year, it entered into the activities of purchase, storage, transport and sale of products from the ecosystem of telephone manufacturers. In addition, it expanded the corporate purpose, consisting of the sale, transportation and storage of materials, among others, network equipment, servers, cables, terminals and waste (industrial and electrical and electronic equipment).

In net terms, Zeleris’ profit rose by more than 51%, exceeding 47.68 million euros. In 2019, it barely exceeded 10 million. Meanwhile, the operating result rose by 53% in 2021, to exceed 63.5 million euros.

In this case, the company decided to allocate net profits to voluntary reserves. In 2020, the company had paid its majority shareholder, in this case Telefónica de España, a dividend of 18 million euros. The sole administrator of the former Zeleris is Sergio Oslé, CEO of Telefónica Spain.

Heritage

Similarly, Telefónica Servicios Integrales de Distribución increased its equity from 17 to 65 million euros. The company also increased its corporate tax payments from 10.46 to 15.88 million.

The company explains that the 2021 financial year was a year in which the traditional activities associated with the management of materials for recovery or disposal, distribution and logistics services, and the activity of marketing services and wholesale telecommunications products, showed significant growth, both in income and results.

The company also launched and consolidated new businesses in 2020 and 2021. Thus, for example, the Telefónica subsidiary highlights the consolidation of the new activities started: technical service (in 2020, Zeleris launched a repair service for electronic equipment such as telephones mobile, tablets and laptops), recovery services for used materials and the purchase, storage, transport and sale of products from the ecosystem of telephone manufacturers, with a positive impact on the income statement.

In its financial report, the company explains that cost containment and the optimization of existing processes made it possible to increase the efficiency ratio. Thus, he adds that, despite the continuity of the pandemic, a very notable effort was made to improve operational and competitive capacities.

Regarding the evolution of the company, the company foresees a significant growth in the activity of terminal operations in the wholesale service, as well as in the activities of technical service, recovery of materials.

It also points to a slowdown in the activity of managing materials for recovery or disposal, although it also places special emphasis on the development of new technologies and attracting external clients.

Looking to the future, the main impacts and uncertainty in the medium term for Telefónica Servicios Integrales de Distribución are the derivative of the possible evolution of the activity in the current economic situation in Spain, as well as the hyper revolution that has been experienced in the post-pandemic logistics sector.

Telefónica Integral Distribution Services operates throughout the national territory, through its platforms located in Madrid, Barcelona, ​​Zaragoza, Malaga, Seville, Alicante, Vitoria and Coruña. In addition, the company has delegations in the main Spanish cities, through which it can carry out its various commercial and operating activities.

Sale

During the past year, Telefónica sounded out the sale of these logistics assets, within its divestment strategy to reduce debt and improve financial flexibility. In fact, the operator received expressions of interest in the subsidiary from different investment funds, which are committed to these activities.

However, in the end no agreement was closed on these assets, which were then valued at more than 100 million euros.

Major clients of the company

Sales. In the 2021 financial report, the company indicates that 33% of sales correspond to companies of the Telefónica group itself (34% in the previous year). In this sense, Telefónica Servicios Integrales de Distribución works for large clients, with whom it has guarantees, through large financial institutions (CaixaBank, KutxaBank or Ibercaja), to offer logistics, transport (national and international), parcel services, messaging, storage, handling and distribution of documentation, delivery of books, or suitcase services, among others.

Customers. These clients include public administrations, both regional and central administration, and large companies. The company’s financial report includes clients such as Madrid Destino Cultura Turismo y Negocios, ICEX, General Directorate of Tourism of the Community of Madrid, Public Company for the Management of Tourism and Sports of Andalusia, Agricultural and Fisheries Management Agency of Andalusia , Ministry of Employment, Tourism and Culture of the Community of Madrid, State Agency Official State Gazette, UNED, Community of Madrid, National Currency and Stamp Factory, Hijos de Sabino Santos, Postquam Cosmetic, or Logistic Spain Park Development, among others .