Contract logistics revenues slide 9.1% over the 9M period
CEVA Logistics has reported a 7.6% increase in Q3 revenues, to US$1,881.0 million, as EBITDA climbed 32.8% to US$166.0 million. EBITDA excludes net finance income/(expense), income tax income/(expense), depreciation, amortisation and share of profit from joint ventures. Operating income increased by a multiple of five, from US$9.0 million in Q3, 2019, to US$45.0 million in Q3, 2020. Profit for the period was US$8.0 million, up from losses of US$33.0 million.
In Freight Management, revenues from external customers were US$1,008.0 million, up 16.7% from Q3, 2019. Air freight revenues of US$391.0 million were up 30.3%. Ocean freight revenues climbed 29.1% to US$328.0 million. In Contract Logistics, revenues from external customers were US$873.0 million, down 1.2% from Q3, 2019.
For the 9M, 2020 period, CEVA Logistics saw a 1.2% increase in revenues, to US$5,327.0 million, as EBITDA climbed 17.2% to US$456.0 million. Operating income reached US$102.0 million, more than double the US$47.0 million figure of 9M, 2019. Losses for the period were US$29.0 million, narrowing from losses of US$103.0 million.
In Freight Management, revenues from external customers were US$2,889.0 million, up 12.1% from 9M, 2019. Air freight revenues of US$1,230.0 million were up 31.4%. Ocean freight revenues climbed 13.3% to US$903.0 million. In Contract Logistics, revenues from external customers were US$2,438.0 million, down 9.1% from 9M, 2019.
Although logistics volumes were lower than last year during the first nine months of 2020, the Group has been able to mitigate the financial impact on COVID-19 by associated business opportunity upsides, renegotiations with key suppliers and a strong focus on the adaptation of variable costs. However, the Company warned that the full length and impact of the COVID-19 crisis remains difficult to predict.
Across recent months, the Company has been extending its reach across Africa.
On 03 July 2020, CEVA acquired 70.0% of AMI Worldwide Limited. The purchase price was US$10.5 million. AMI Worldwide Ltd offers end-to-end logistics solutions in freight forwarding. It is present in twelve countries mainly in East and Southern Africa and has more than seventy-five offices worldwide. The estimated annual Revenue is US$95.0 million. The acquired AMI legal entities under control of CEVA Logistics AG have been consolidated in Q3, 2020.
On 08 October 2020 CEVA completed the acquisition of 49.0% shares in MACCFA Freight Logistics PLC. MACCFA is a freight forwarder based in Ethiopia. The acquisition price was US$5.9 million.