CEVA Logistics, part of the CMA CGM Group, announced its results for the second quarter and the first half of 2019.
For the first half of 2019, revenue increased by 2.5 percent in constant currency to US $ 3,514 million.
On a reported basis, revenue in the first half declined by 3.4 percent year-on-year due to negative translation of foreign currencies such as the TRY, the EUR and the GBP into USD. Group’s EBITDA was US $ 281 million, which on a pre-IFRS 16 basis represented US $ 85 million resulting in an EBITDA margin of 2.4 percent.
Nicolas Sartini, CEO, CEVA Logistics, commented: “CEVA went through significant and structural changes in the first half of 2019 against a challenging macroeconomic backdrop. We are currently focusing on the turnaround of the Company through deep operational changes and on achieving positive free cash flow as early as the fourth quarter 2019.”
The new management team is focusing on top line improvement with stronger business development structures and stronger contractual protections, a quicker resolution of situations currently holding back performance: underperforming contracts in Contract Logistics, including Italy, Ground operations, notably in North America, quicker roll-out of technology both in Freight Management and Contract Logistics in order to achieve more automated processes and better standardization. Finally, actions are underway to reinforce internal processes, more systematic sharing of best practices, performance measurement tools and employee engagement with the objective of higher retention.