CEVA says it maintained its “positive momentum” in the third quarter (Q3) ending 30 September this year as revenue grew 5.4 per cent, but still remains in the red.
In Q3, the freight management division maintained volume growth for its air product at 11.8 per cent versus prior year and CEVA says market volatility in airfreight rates continues, notably on routes ex-Asia, but volume planning and pricing measures have enabled it to mitigate that pressure to a “large extent”.
Freight management EBITDA in Q3 was $26 million, down $1 million year-over-year (YOY) as a result of margins pressure from rates.
Q3 revenues were $1,782 million up 5.4 per cent in constant currency and up 6.1 per cent in actual currency. For the nine months, revenues were $5,099 million up 5.6 per cent in constant currency and up 3.8 per cent in actual currency.
In Q3, adjusted EBITDA came in at $85 million, up $11 million in constant currency versus the prior year. For the YTD, adjusted EBITDA came in at $209 million, up $22 million in constant currency versus the prior year. CEVA says cost reductions will support profits in the coming quarters.
CEVA registered a net loss for the period of $22 million, which was an improvement on the $41 million loss last year.
CEVA chief executive officer, Xavier Urbain says: “We have been able to offset ongoing market volatility in air and ocean freight. Our procurement and pricing strategy has enabled us to protect yields sequentially.
“Contract logistics continues to grow and delivers improved results through focused action on contracts. CEVA is on track to deliver a stronger result in 2017. The transformation we have embarked on is positioning CEVA as a strong player for the future.”