CEVA sees positive Q2, creates Project Log div

CEVA Holdings, one of the world’s leading non‐asset based supply chain management companies, reported results for the three months ended 30 June 2015 with an adjusted EBITDA up 25 per cent year-on-year (up 31.7 per cent in constant currency).


CEVA Holdings, one of the world’s leading non‐asset based supply chain management companies, reported results for the three months ended 30 June 2015 with an adjusted EBITDA up 25 per cent year-on-year (up 31.7 per cent in constant currency).

“The company turned in a solid second quarter performance in the face of several industry headwinds and significant exchange rate fluctuations,” it added. Second quarter revenue of US$1.776 billion was up 0.3 per cent year-on-year (y-o-y) in constant currency, driven by volume growth, partially offset by freight rates and fuel prices.

Freight Management delivered significant EBITDA improvement as a result of what CEVA said was the company’s continued focus on productivity increases, process improvements and effective transportation procurement drove 250 basis points of improvement in Freight Management margin in Q2.

Volumes held steady in the face of uneven global demand with Q2 air freight volumes up 0.7 per cent y-o-y due to a weakening Asia Pacific export market. Ocean Freight volumes were up four per cent y-o-y reflecting solid growth in Europe, it said.

Contract Logistics maintained industry-leading adjusted EBITDA margins of 5.5 per cent in Q2, up from 4.9 per cent in Q1 driven by an ongoing focus on underperforming contracts and effective warehouse space utilisation. Contract Logistics revenue was up 0.9 per cent y-o-y in constant currency.