Ceva Logistics drove adjusted EBITDA up 27 per cent to €80m in the third quarter of 2015, despite the fact that revenue, at €1.7bn, was down 13.1 per cent from the third quarter of 2014.
“Ceva’s new operating model continues to pay off,” said CEO Xavier Urbain. “Despite overall industry headwinds, our performance in the third quarter was robust and we continue to defend our position in a generally soft market. Our focus on process and product improvement for all business lines has allowed us to increase profitability in spite of difficult industry volume evolution.”
Adjusted EBITDA margins in Contract Logistics were 6.2 per cent in the Third Quarter, up from 5.5 per cent in the previous quarter, driven by effective space management and improved productivity. Contract Logistics revenue is flat like-for-like, year-on-year in constant currency.
The business pipeline were up five per cent year on year, with a hit rate that increased to 25 per cent from 21 per cent over the previous quarter. Contract wins included four, ten-year warehousing and transport contracts for leading fashion retailers Coast, Karen Millen, Oasis and Warehouse which amount to over $40 million annually.
EBITDA in Freight Management was up 125 per cent year-on-year in constant currency. Weaker markets for air and ocean freight meant that air freight volumes declined 4 per cent year-on-year and ocean freight volumes declined 5.7 per cent year-on-year.
Air and Ocean productivity gains were achieved through focus on system enhancements, process improvements as well as cost control. Freight Management’s business pipeline increased 13 per cent per cent over the previous year, and its hit rate increased to 30 per cent compared to 28 per cent in the previous quarter.