CEVA Logistics generated US$7.4 billion in revenue for 2018, a year-on-year increase of 5.4% at constant currency, according to results released by the company.

Adjusted EBITDA fell by 4.4% to US$260 million.

According to CEVA, freight management revenue grew by 7.3% to US$3.5 billion in 2018. Ocean volumes experienced a growth of 7.9%, while air freight volumes fell by 0.7% compared to 2017, mainly due to the loss of certain customers and a selective approach to new business.

Revenue for contract logistics increased by 3.3% to US$3.8 billion for the year, with good volumes in existing contracts and the implementation of new business, such as in the consumer, retail, healthcare and e-commerce sectors.

“CEVA finished the year with sound commercial performance in 2018,” said Xavier Urbain, CEO of CEVA Logistics. “Margins have been impacted by one-time costs, in particular contract logistics in Italy. Looking ahead, we are confident in our ability to meet our enhanced medium-term targets with the support of our strategic partner CMA CGM. The organization is on track to accelerate its transformation and turnaround action plan in the next three years and beyond. Our expectations for 2021 are to exceed US$9 billion of revenue and reach an adjusted EBITDA of US$470-490 million which corresponds to an EBITDA margin of 4.5 to 5%. A new chapter for CEVA is being written, together with our strategic partner.”