Highlights of the year:
- Record revenue of €7,224 million
- Comprehensive cost-reduction program initiated
- Record new business wins of €1,892 million, ahead of target for second consecutive year.
CEVA Group Plc (“CEVA” or the “Company”), one of the world’s leading non-asset based supply chain management companies, today reports preliminary unaudited results for the year ending 31 December 2012. CEVA delivered revenue growth of 4.8%, while Adjusted EBITDA in both Freight Management and Contract Logistics was adversely impacted by economic conditions.
“These are difficult times for everyone in the global logistics industry and CEVA has not been immune to those pressures,” said CEVA CEO Marvin O. Schlanger. “While our revenue line has been resilient, we have seen a marked deterioration in EBITDA in both our FM and CL businesses. This simply isn’t good enough and we have taken action to reverse this decline in profitability. We will continue to take actions necessary to establish satisfactory levels of profitability.”
Year ended 31 December
| Key Financials (€ millions) | Actual exchange rates | ||
| 2011 | 2012 | Change | |
| Revenue | 6,895 | 7,224 | 4.8% |
| Adjusted EBITDA 1,2 | 321 | 251 | (21.8%) |
1All references to EBITDA are to Adjusted EBITDA.
2Excludes the impact of specific items which are significant non-recurring items such as restructuring and certain legal expenses.
Revenue increased 4.8% in the year to €7,224 million, a record for the Company. At constant currency revenue was broadly flat year on year. Revenue in Freight Management increased 6% as lower Airfreight volumes, particularly out of Asia, were offset by a solid performance in oceanfreight across all regions. The increase in the Company’s Contract Logistics revenues reflects soft conditions across various key markets, most evident in Southern Europe, compensated by a strong performance in Asia Pacific. EBITDA before specific items (Adjusted EBITDA) decreased 21.8% to €251 million (2011: €321 million). At constant exchange rates, EBITDA fell 28.0%. Freight Management Adjusted EBITDA in 2012 decreased by 17.7% compared to 2011, partly due to a modal shift to oceanfreight with increased competition and soft airfreight volumes. Contract Logistics Adjusted EBITDA decreased by 24.4% in 2012, as our business was affected by the continuing general economic downturn with lower volumes in various key markets, in particular Southern Europe. Net working capital increased in the year to €(67) million (2011: €(76) million). The increase is due mainly to slightly higher trade receivables and accrued income balances at 2012 year end, partly offset by a higher trade payables balance. At 31 December 2012, headroom was €296 million (31 December 2011: €290). At 31 March 2013, the Company had approximately €200 million of total headroom.
