CEVA’s first quarterly results produced post-IPO show improvements on the first quarter of 2017. Revenue of $1,790m marked a 12.2% improvement year-over-year, or 5.4% on a constant exchange rate basis. EBITDA of $53m was 17.8% higher.
Interestingly, the company gave further details on its relationship with new shareholder CMA CGM. CEVA will continue to use other carriers, but the two will explore new business opportunities which it hopes will include end-to-end co-operation and enhance geographic coverage. The group has initiated plans to repay its debt using its IPO funds. It also stated that expected Moody’s and S&P Global to update its credit rating over the next few weeks.
Revenue in Freight Management was $803m in the Q1 2018, an increase of 14.4% year-on-year or 8.7% in constant currency due to good volumes, new business wins and higher freight rates, particularly in its air freight division. Air freight volumes were 1.6% higher, with ocean freight volumes up 13.8%. EBITDA increased by 50% to $15 million, supported by yield improvements and continued productivity increases and efficiencies.
Contract Logistics revenues of $987m represented an increase of 10.4% or 2.8% in constant currency terms versus the prior year. The group recorded new business wins, notably in the US, Australia and Brazil, but some revenues moved out from its main business to its Anji-CEVA joint venture. EBITDA increased by $3m to $38m.
Xavier Urbain, CEO of CEVA Logistics, said, “The successful IPO opens a new chapter for CEVA. The deleveraged balance sheet and the strategic investment by CMA CGM will create important growth opportunities. I am confident that we can further improve margins and deliver significant earnings growth in the years to come – our target is to improve Adjusted EBITDA by $100 million in the medium-term.”
Source: Transport Intelligence
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