Ceva Logistics AG, a third-party logistics company, announced its results for the quarter ended 31 March 2018.
The first quarter 2018 shows the progress Ceva is making in its transformation with continued revenue growth, improved EBITDA and cash flows, this is a continuation of the performance in the prior quarters and a good start to the year. The first quarter is seasonally the weakest quarter for Ceva in terms of revenue, profits, margins and cash flows.
Revenue in the first quarter of 2018 was $1,790 million, up 12.2% versus prior year or 5.4% in constant currency.
Adjusted EBITDA was $66 million up $12 million or 22% year on year. Reported EBITDA was $53 million up $8 million year on year.
EBITDA margin was 3.0% in the first quarter, an improvement of 40 basis points in constant currency. Both Freight Management and Contract Logistics showed better margins.
Following the successful IPO on SIX Swiss Exchange, Ceva has initiated the process of repaying debt with the net proceeds from the IPO.
“I am pleased to report another good quarterly result. Q1 2018 has shown once more that CEVA is delivering on its transformation with continued growth and consistent EBITDA improvement. We’ve seen good momentum and had several new business wins. We have further improved productivity and reduced cost” said Xavier Urbain, CEO of Ceva Logistics.
“The successful IPO opens a new chapter for Ceva. The deleveraged balance sheet and the strategic investment by CMA CGM will create important growth opportunities. I am confident that we can further improve margins and deliver significant earnings growth in the years to come – our target is to improve Adjusted EBITDA by $100 million in the medium-term.”, he added.