Supply chain management company, CEVA Logistics, saw its revenue decline in 2015 by 11.5 percent to US$6.95 billion, compared to $7.8 billion in 2014, but its net losses shrank significantly, from $413 million in 2014 to $195 million last year. At the same time, full-year airfreight volumes increased marginally and adjusted EBITA rose to $272 million, a 22.2 percent improvement on 2014’s $242 million.
CEVA said it freight management division saw its adjusted EBITA in 2015 increased sharply to $70 million, compared to $22 million in 2014. The company attributed the growth to “trade lane management and process improvements” despite the short peak season seen in 2015.
Even though the peak season in 2015 was shorter than 2014, CEVA describing Q4 2015 as “the latest in a series of strong quarters” for the company, during which airfreight outperformed the market due to a number of new customers CEVA obtained, on trade lanes from Europe to China. Asian exports also performed relatively well in the fourth quarter, the company said.
“Of our 17 geographical clusters, 15 performed at or above expectations in 2015, which shows that our operating model is working,” said Xavier Urbain, CEO. “We also see a number of opportunities to further improve our EBITA in 2016 driven by continued investments in our field sales teams and operations.”