CEVA Logistics reports narrowing 9M losses, as revenues increase 1.2%

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.

More:  FedEx and Microsoft launch FedEx Surround

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.


More from: | Category: Logistics Company News