CEVA has announced in 2018 results with the Company's underlying business continueing to perform in line with expectations in both Freight Management and Contract Logistics.
However, various one-time items have significantly impacted profitability.
Revenue increased by 5.2% to $7,356 million in 2018 compared to previous year. The Group's EBITDA was $198 million in 2018 with an EBITDA margin of 2.7%.
Whilst CEVA teams have achieved continued progress in productivity, cost reduction and other margin improvement initiatives, EBITDA has been negatively impacted by various one-time events including Contract Logistics issues in Italy as well as some changes in accounting estimates in the fourth quarter.
Revenue in freight management increased by 7.3% to US$3,508 million whilst revenue in contract logistics increased by 3.3% to US$3,848 million in 2018.
Revenue at Anji-CEVA Joint Venture (owned 50% by CEVA) amounted to US$1.4 billion, an increase of 23.7% compared to 2017 in constant currency.
Said Xavier Urbain, CEO of CEVA Logistics: "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."