EQS Group-Ad-hoc: CEVA Logistics AG / Key word(s): Miscellaneous
CEVA Logistics AG: CEVA reports its unaudited results for the first two
months
05-Apr-2019 / 18:20 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
*Baar, Switzerland, 5 April, 2019 - In the context of considering strategic
financing options, CEVA Logistics AG ("CEVA" or the "Company") reported
today its unaudited results for the first two months of 2019. *
*- Revenue growth of almost 3% in the first two months of 2019 in constant
FX ,compared to previous year driven by strong volume growth in Ocean
Freight*
*- Strong yield in Air Freight and strong retention rate in Contract
Logistics*
*- New business performance off to a solid start*
*- Adjusted EBITDA of US$30 million1*
*- Net debt down by US$922 million1 as of 28 February, 2019, a decrease of
40% compared to US$2,309 million a year earlier*
1 Pre-IFRS 16
*Key *2019* *IFRS *2019* *2018* *Change *Change
Financial 16* YoY* YoY
s for the constant
First Two FX*
Months-
Unaudited
*
(US$ Reported Impact Pre-IFRS Reported Pre-IFRS Pre-
million) 16 16 IFRS 16
Revenue 1,111 - 1,111 1,151 -3.5% +2.8%
EBITDA 90.5 67.2 23.3 26.4 -11.7% -6.4%
(a)
EBITDA 8.1% 6.0% 2.1% 2.3% -20 bps -20 bps
margin
Adjusted 98.2 68.7 29.5 34.5 -14.5% -9.4%
EBITDA
(b)
Net Debt 2,588 1,201 1,387 2,309 -40%
as of
February
28
(a) EBITDA excludes specific items and share-based compensation cost (SBC)
in the table and in the whole document.
(b) Adjusted EBITDA includes the 50 % share of the Anji-CEVA joint venture
and excludes specific items and
share-based compensation cost.
_"Despite a challenging global environment, CEVA has continued to perform in
line with our targets and achieved a number of productivity improvements. We
are definitely confident that the support of CMA CGM will help us turnaround
the company quickly and achieve our medium-term objectives," says Xavier
Urbain, CEO of CEVA Logistics._
*Group results (on a pre-IFRS 16 basis)*
Revenue increased by 2.8% in constant currency to US$1,111 million in the
first two months of 2019 (same period in 2018: US$1,151 million). The
Group's EBITDA[1] was US$23 million in the first two months of 2019 (same
period of 2018: US$26 million) resulting in an EBITDA margin of 2.1% (same
period in 2018: 2.3%).
EBITDA continues to be negatively impacted by the performance in Contract
Logistics in Italy as the contract issues are in the process of being
solved. In addition, despite stronger yields (Net revenue per tonne) Air
Freight has experienced a relatively slow start to the year with weaker
volumes than in the same period last year, due to high inventory levels in
the US built at the end of 2018. Furthermore, the translation effect of some
currencies into US$, notably the BRL, the TRY and the CNY negatively
impacted EBITDA by a further US$1.5 million in January and February 2019.
Adjusted EBITDA in the first two months of 2019 amounted to US$30 million
(same period in 2018: US$35 million).
*Freight Management (on a pre-IFRS 16 basis) *
Revenue in Freight Management increased by 1% to US$519 million in the first
two months of 2019 (same period of 2018: US$513 million). In constant FX,
revenue increased by 5.6% year-on- year. CEVA continued to experience good
volume growth in Ocean, up 7 % year-on-year to 126,566 TEUs, ahead of market
growth. Ocean yield (Net revenue /TEU) , consistent with the same period of
2018, was US$285 /TEU, which represents a strong increase compared with the
fourth quarter of 2018 (US$226 /TEU). Air volumes decreased by 7.4%
year-on-year, mainly from downtrading of some trade lanes and a selective
approach to new business whilst Air yield (Net revenue per ton) has
increased by 5.7% to 848 US$/t.
EBITDA was broadly flat year-on-year to US$5.3 million in the first two
months of 2019. EBITDA margin was also flat at 1% for the first two months
of 2019, compared to the same period of 2018. Meanwhile, productivity
actions continued to deliver improvement in the File per Operator ratio in
both Air (up nearly 3%) and Ocean (up 4%).
*Contract Logistics (on a pre-IFRS 16 basis)*
Revenue in Contract Logistics decreased by 7.2% to US$592 million in the
first two months of 2019 (same period of 2018: US$638 million) as
significant currency impact has hit some of our major geographies (Turkey,
Brazil and Australia). In constant FX, revenue decreased by 0.4% year over
year. The company handled solid volumes in existing contracts and there was
good implementation of new business. A significant albeit low margin supply
chain service in Contract Logistics in the US has been terminated therefore
impacting revenue growth. However, the retention rate in Contract Logistics
has significantly improved in the first two months of 2019.
Contract Logistics EBITDA was down by US$3 million to US$18 million for the
first two months of 2019 (same period of 2018: US$21 million). Despite
productivity improvements in the majority of geographies and structural
margin improvement in several low margin contracts, one of the two
challenging contracts in Italy continued to weigh on the Group's overall
performance. In addition, unexpected factory shutdowns in the automotive
sector have negatively impacted performance in Central Europe and Brazil. As
a consequence, the EBITDA margin was down 20 bps in the first two months of
2019 to 3.0%, compared to the same period of 2018.
*Anji-CEVA (CEVA's share is 50%- on a pre-IFRS 16 basis)*
In the first two months of 2019, revenue at Anji-CEVA Joint Venture (owned
50% by CEVA) amounted to US$238 million, an increase of 0.4% compared to the
same period of 2018 . In constant currency, the revenue increase by 6.4%.
EBITDA for the first two months of 2019 was US$12.5 million, down 23%
compared to the same period of 2018 (-18.9% in constant currency). This
performance reflected the current challenges of the Chinese automotive
market. However, the current diversification outside the Automotive sector
is well underway.
*Good new business momentum*
CEVA experienced continued strong momentum with new business wins up 14% in
the first two months of 2019. Significant new contracts and extensions were
won in January and February: CEVA has won Automotive contracts in Benelux,
Asia and Americas regions, Consumer & Retail in IMEA region, as well as
Technology and Industrial contracts in North America. Pipeline is healthy 2%
above last year and well above target. The partnership with CMA CGM is also
delivering additional revenues.
*Outlook*
CEVA is confirming its medium term targets for 2021:
- CEVA's 2021 revenue target above US$9 billion, reflecting a 5% average
annual organic growth and the contribution of CMA CGM Logistics of US$630
million;
- upgraded 2021 management expectations on Adjusted EBITDA raised from
US$380 million to US$470-490 million pre-IFRS 16 implementation.
Management's expectations remain that 2019 will see progress in line with
the 2021 objectives, including improvement in EBITDA margin and in free cash
flow.
Notes from Editors:
All references to EBITDA exclude specific items and share-based compensation
cost (SBC).
A CEVA Credit update Investor Call is planned on Tuesday, 9 April, 2019 at
9AM UKT/10AM CET.
A presentation will be available on CEVA's website/IR section [1] on 8
April, 2019.
Dial-in details
UK: 0800 640 6441
France: 0800 94 5619
Germany: 032 221098334
Switzerland 022 518 90 26
Access Code: 332153
*For additional information please contact: *
*Investors:*
Pierre Bénaich
SVP Investor Relations
pierre.benaich@cevalogistics.com
+41 41 547 0048
*Media:*
Matthias Hochuli
Group Head of Marketing and Communications
matthias.hochuli@cevalogistics.com
+41 41 547 00 52
Cathy Howe
Pilot Marketing
ch@pilotmarketing.co.uk
Tel: +44 (0)208 941 5381
*CEVA - Making business flow*
CEVA Logistics, a global asset-light third-party logistics company, designs
and operates industry leading supply-chain solutions for large and
medium-size national and multinational companies. Its integrated network in
Freight Management and Contract Logistics spans more than 160 countries.
Approximately 58,000 employees are dedicated to delivering effective
solutions across a variety of industry sectors where CEVA applies its
operational expertise to provide best-in-class services. CEVA generated
revenue of USD 7.4 billion and adjusted EBITDA of USD 260 million in 2018.
CEVA Logistics is listed on SIX Swiss Exchange under ticker symbol CEVA. For
more information, please visit www.cevalogistics.com [2].
*Safe Harbour Statement*
This news release contains specific forward-looking statements. These
forward-looking statements include, but are not limited to, its results for
2018 and guidance beyond, discussions regarding industry outlook, CEVA's
expectations regarding the performance of its business or joint ventures,
its liquidity and capital resources, and other non-historical statements.
These statements can be identified by the use of words such as "believes"
"anticipates," "expects," "intends," "plans," "continues," "estimates,"
"predicts," "projects," "forecasts," and similar expressions. All
forward-looking statements are based on management's current expectations
and beliefs only as of the date of this news release and, in addition to the
assumptions specifically mentioned in the above paragraphs, there are a
number of factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements, including the effect of local and national economic, credit and
capital market conditions, a downturn in the industries in which we operate
(including the automotive industry and the air freight business), risks
associated with CEVA's global operations, fluctuations and increases in fuel
prices, CEVA's substantial indebtedness, restrictions contained in its debt
agreements and risks that it will be unable to compete effectively. Further
information concerning CEVA and its business, including factors that
potentially could materially affect CEVA's financial results, is contained
in the annual and quarterly reports of CEVA Logistics AG (and its
predecessor CEVA Holdings LLC), available on the Company's website, which
investors are strongly encouraged to review. Should one or more of these
risks or uncertainties materialise or the consequences of such a development
worsen, or should underlying assumptions prove incorrect, actual outcomes
may vary materially from those forecasted or expected. CEVA disclaims any
intention or obligation to update publicly or revise such statements,
whether as a result of new information, future events or otherwise.[1]
EBITDA excludes specific items and share-based compensation cost (SBC).
End of ad hoc announcement
796723 05-Apr-2019 CET/CEST
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(END) Dow Jones Newswires
April 05, 2019 12:21 ET (16:21 GMT)
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