CEVA net loss deepens but revenues climb

The asset-light third-party logistics company benefits from volumes growth and new business wins and prepares for “new chapter” with CMA CGM.    CEVA Holdings LLC deepened its net loss in the first quarter of 2018 to $67 million, compared to a $57 million net loss for the corresponding 2017 period, mainly due to an increase in finance expenses and higher depreciation and amortization.
   However, CEVA saw overall revenues for the quarter rise 12.2 percent year-over-year to $1.79 billion, with its freight management and contract logistics segments both seeing substantial revenues increases.
   In CEVA’s freight management segment, revenues reached $803 million for the quarter, up 14.4 percent from last year’s first quarter, thanks to volumes growth, new business wins and higher freight rates, particularly in air.
   In the contract logistics segment, CEVA posted revenues of $987 million, up 10.4 percent year-over-year, which it attributed to volumes growth, new business wins, the termination of certain contracts and the transfer of contract logistics activities in China to the Anji-CEVA JV as of July 2017.
   “The quarter has seen the implementation of major automotive and industrial contracts that will benefit the coming quarters, as well as significant wins of e-commerce and consumer/retail contracts, notably in the U.S., Australia and Brazil,” CEVA said.
   Although financial results for the quarter were for CEVA Holdings, on May 3, CEVA Holdings and CEVA Logistics AG legally merged, with CEVA Logistics AG being the surviving entity. The following day, CEVA Logistics kicked off its initial public offering on the SIX Swiss Stock Exchange.
   On May 8, CEVA completed the IPO and concurrent private placement with CMA CGM Group, which is becoming a 24.99 percent shareholder in the company.
   The gross proceeds from the two operations totaled CHF 1.2 billion (U.S. $1.2 billion) and could further increase if the over-allotment is exercised by the bookrunners, CEVA said, adding that the net proceeds mainly will be used to repay debt.
   “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,” CEVA Logistics CEO Xavier Urbain said.
   Looking ahead, CEVA expects volumes and revenues growth to continue for 2018.