CEVA Logistics reported today in its full year results that it losses in 2018 plunged further and one-time costs hit finances.
The freight forwarder’s net income last year came in at a loss of $242 million, compared with a 2017 loss of $197 million, although revenues were up 5.2 per cent year-on-year to $7.4 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased to $198 million.
Last year, CEVA launched a strategic partnership with CMA CGM on 12 February to boost CEVA’s growth and improve its profitability and it is set to fully settle around 17 April 2019.
In 2018, revenue in freight management increased by 7.3 per cent to $3,508 million in 2018. Air volumes slightly decreased by 0.7 per cent year-on-year, mainly from the earlier loss of certain customers and a selective approach to new business. However, air yields (net revenue per tonne) increased by 6.7 per cent to $688 per tonne.
Chief executive officer, Xavier Urbain says: “CEVA finished the year with sound commercial performance in 2018. Margins have been impacted by one-time costs, in particular Contract Logistics in Italy. Looking ahead, we are confident in our ability to meet our enhanced medium-term targets with the support of our strategic partner CMA CGM.]
“The organization is on track to accelerate its transformation and turnaround action plan in the next three years and beyond. Our expectations for 2021 are to exceed US$9 billion of revenue and reach an Adjusted EBITDA of US$470-490 million which corresponds to an EBITDA margin of 4.5 to 5%. A new chapter for CEVA is being written, together with our strategic partner.”