CEVA Holdings LLC – Company Strategy & Performance Analysis

CEVA Holdings LLC is considered one of the world’s leading non-asset based supply chain management companies. It offers freight management and contract logistics services and provides supply chain solutions to medium- and large-scale multinational firms.

CEVA’s Freight Management division provides international air, ocean, ground, and customs brokerage services. The Contract Logistics division delivers inbound logistics, manufacturing support, distribution logistics, and aftermarket services. CEVA has a presence in 160 countries and has 8.0 million m2 of warehouse space. CEVA is headquartered in the Netherlands.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, and total revenue.

Key Highlights

Fluctuations in freight rates led to a decline in revenue

Through its freight management division, CEVA operates as a non-asset based carrier offering international air and sea freight, domestic freight forwarding, customs brokerage, deferred freight and other value-added services. The division’s revenue declined at an annual rate of 5.7%, from US$3.2m in 2015 to US$3.0m in 2016. However, during Q4 2016, the volumes of freight services were strong, with air freight up by 7.5% and ocean freight up by 8.9% in comparison to Q4 2015.

Contract logistics division posts a decline in revenue due to currency fluctuations

CEVA’s contract logistics division reported a -3.5% decline in revenue, from US$3.8m in 2015 to US$3.6m in 2016. Fluctuations in exchange rates caused the decline. However, if exchange rate fluctuations are ignored, revenue would have increased due to clusters of organic growth.

The company was subject to fluctuations in revenues and profit margins

CEVA recorded an increase in revenue, from US$1.67bn in Q3 FY2016 to US$1.73bn in Q4 FY2016. The increase was due to a growth in the demand for air and sea freight volumes, which rose at respective rates of 7.5% and 8.9%. In 2017, the company’s revenue grew from US$1.6bn in Q1 2017 to US$1.8bn in Q3 of 2017. An increase in the scale of business supported the growth. Profit margins also improved from -1.6% in Q1 FY2017 to -1.1% in Q3 2017.

Scope

– Company Snapshot – Details key indicators and rankings of CEVA in terms of revenue, air freight volume, ocean containers and total warehouse space.

– Company SWOT Analysis – Outlines CEVA's strengths, weaknesses, and opportunities and threats facing the company.

– Growth Strategies – Provides an overview of CEVA’s corporate goals and strategic initiatives and evaluates their outcomes.

– Company Performance and Competitive Landscape – Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.

– Key Developments – Showcases CEVA's recent corporate events and initiatives.

– ICT Spending Prediction – Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.

Reasons to buy

- How does CEVA ranks among its peers in terms of revenue and market share?

- What are CEVA's main growth strategies and how successful has the company been at implementing them?

- How has the company performed since 2014?

- How has CEVA performed in comparison to its main competitors?

- What are CEVA’s strengths and weaknesses and what are the opportunities and threats it faces?

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