NETHERLANDS logistics company CEVA Holdings is in a bullish mood following the release of its results for the 2017 calendar year.
Results for the full year ended December 31 were:
- Revenue of US$7bn, up 5.4% in constant currency;
- Adjusted EBITDA of US$280m, up $31m in constant currency;
- ‘Excellence Program’ executed with US$120m in annualised cost savings;
- Full Year operating cash flow of $209m, up $66m against the previous year.
“I am pleased to report a strong finish to a good year,” said CEVA chief executive Xavier Urbain.
“Our Excellence Program has delivered important cost savings and has supported much better profits despite market headwinds. At the same time, revenue growth across Contract Logistics and Freight Management has been very good. With stronger revenue, profits and cash flow, we have delivered on all our objectives.”
Mr Urbain said CEVA’s competitive position had improved as shown by important recent business wins.
“Through the transformation we have initiated in 2014, CEVA is a much stronger company now,” Mr Urbain said.
“However, we still have ample opportunities to improve margins and deliver even better service to our clients – this is what we are working on.
“I am confident that we can keep the momentum and can continue to improve our results going forward”.
CEVA noted a challenging fourth quarter in airfreight, notably on the China-USA routes where there was tight capacity.
“Air freight volumes in 2017 were up 11.6% year on year with particularly strong Q4 performance on transpacific trade lanes,” the company stated.
Ocean freight was reported to have had a good fourth quarter with volumes up 6.9% year on year.
The Excellence Program was reported to have resulted in important process and cost improvements with productivity up 12.9% in ocean freight.
Overall, freight management revenue was $3.3bn in 2017, up 8.6% in constant currency, while net revenue was $875m, described as “stable versus last year”.