Contract logistics and freight management solutions provider CEVA has released its 2016 end of year results, finishing 2016 with accelerating revenue growth.
While the company’s results for the full year ending 31 December 2016 showed a slight drop in full year revenue – US$6,646m (approx. £5,436m) in 2016 compared to $6,972m (£5,702m) in 2015 – it finished Q4 on a stronger note than in 2015 and expects a good year in 2017.
The provider also had a free cash flow of more than $100m in Q4, driven by strong working capital improvement.
“Despite industry-wide challenges in 2016, our full year results demonstrate that we continue to make positive headway,” commented Xavier Urbain, CEO of CEVA. “In this context, I am very pleased with the Q4 performance, where CEVA demonstrated healthy growth in all business lines and visible impact of our excellence program which supported us to deliver robust EBITDA in spite of the difficult peaks trading. The quarter also saw an impressive recovery in net working capital and strong cash flow.”
The company’s freight management volumes increased significantly throughout the year and were ahead of market growth: air freight grew 7.5 per cent in Q4, whilst ocean freight were up 8.9 per cent. For the full year, air and ocean volume growth was 6.7 per cent and 4.1 per cent respectively.
The contract logistics business showed good growth in the second half of 2016, from a number of business wins and volume growth on existing contracts.
“Overall, 2016 was a year of significant progress in the transformation of CEVA,” continued Urbain. “We had some important business wins, successfully addressed legacy issues and we continued to build a much stronger platform.
“The strong improvement in results in many of our markets were overshadowed by weaker performance in some countries, which we continue to address. We enter 2017 in a stronger position and I am confident that we will have a much better performance with our excellence program leading to further cost savings.”