Saying he was pleased with the progress made in rebuilding the leadership team at CEVA, the group’s CEO, Xavier Urbain, said: “Our performance improvement coupled with the strong increase in our new business pipeline points to the company being on the right track for growth… The numbers show we are gaining traction and are positioned well to make further progress in the future.”
Revenue of US$1.98 billion declined 4.2 per cent in the second quarter compared to $2.06 billion for the same period a year earlier, driven by the prior year’s successful recapitalisation and termination of lower margin business. Second quarter revenues were up 6.1 per cent sequentially compared to the first quarter. For the second quarter, adjusted EBITDA of $60 million was 40 per cent ahead of the previous quarter and adjusted EBITDA as a percentage of revenue improved from 2.3 per cent to three per cent, reflecting continuing strength in Contract Logistics and the termination of lower margin business, CEVA said. EBITDA came in 25 per cent lower than in the same period a year earlier as Freight Management revenues were impacted by lower rates in the market. CEVA, however, was able to maintain net revenue margins versus the prior year.
Airfreight and Oceanfreight reported export volumes up both sequentially and year-on-year. Airfreight volumes increased one per cent from the prior year, strengthening as the group exited the quarter, with three week rolling volumes up four per cent in June. Oceanfreight volumes were up seven per cent from the prior year.
The company’s new business wins were up 31 per cent over the previous year, increasing to $763 million, compared to $582 million for the same period in 2013. CEVA’s investment in its tender management, trade lane management and field sales force each contributed to the improved level of wins in the quarter, it said.