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CEVA profit soars 18pc to US$66 million, sales up 12pc

来源:    编辑:编辑部    发布:2018/05/17 14:51:15

DUTCH forwarding giant CEVA Logistics' first quarter pre-tax profit increased 18 per cent year on year to US$66 million, drawn on revenues of $1.7 billion, up 12 per cent.

One of the leading asset-light third-party logistics companies also announced the completion its IPO on Swiss Stock Exchange that raised CHF1.2 billion (US$1.1 billion) and is expected to repay and refinance most of the company's debt. 

"I am pleased to report another good quarterly result has shown once more that CEVA is delivering on its transformation with continued growth and consistent EBITDA improvement," said CEO Xavier Urbain. 

"We've seen good momentum and had several new business wins. We have further improved productivity and reduced cost," he 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," said Mr Urbain.

Revenue in freight management was $803 million in the first quarter of 2018, an increase of 14.4 per cent year on year.

Revenue in air freight was strong with an increase of 21.8 per cent year on year. Volume growth at 1.6 per cent was lower than in prior quarters reflecting the delayed onboarding of new business wins and certain contract losses. 

Revenue per ton was up 17.1 per cent, driven by better procurement and active margin management, said the company statement.

Revenue in ocean freight increased 13.8 per cent with volumes up 8.5 per cent with good growth in all key trade lanes and market share wins though yields were flat. 

Contract logistics revenue as up 10,4 per cent to $987 million. This reflects volume growth, new business wins and the termination of certain contracts and transfer of the contract logistics activities in China. Growth was strong in some of the European clusters, Latin America and South-East Asia.

Management plans to grow revenue above market and to increase EBITDA margins from the 3.3 per cent recorded in 2017 to at least four per cent in the medium-term. This should translate into an additional $100 million in adjusted EBITDA, said the company statement.

"For 2018, CEVA expects continued good volume and revenue growth in view of the sales momentum and recent business wins.

"Management continues to believe that it can achieve for 2018, assuming no change in market conditions, double-digit adjusted EBITDA growth and positive free cash flow,?said the CEVA statement.

The results for the first quarter 2018 are for CEVA Holdings LLC, the predecessor company to CEVA Logistics AG. On May 3, CEVA Holdings LLC merged with CEVA Logistics AG with CEVA Logistics AG being the surviving entity that then listed on the Swiss Stock Exchange.