CMA CGM Releases Subdued Second Quarter 2023 Financial Results
First-quarter 2023 trends remained at play in the second quarter of 2023 for CMA CGM with subdued market conditions in the transport and logistics industry.
Despite a rebound in demand for transport in the second quarter of 2023 compared with the previous quarter, driven by a degree of macroeconomic resilience and lower energy prices, the transport and logistics market remains depressed.
Revenue stood at US$ 12.3 billion in the second quarter of 2023, driven mostly by the Group’s shipping business.
EBITDA came to US$2.6 billion, 73% lower than in second-quarter 2022. EBITDA margin came in at 21.1%, down 28.1 points.
Net income, Group share amounted to US$1.3 billion. Financial resources net of debt totaled US$3.8 billion at June 30, 2023, down US$ 1,852 million from December 31, 2022.
Egypt Signs Major Ports & Shipping MoU with CMA CGM
Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “As expected, our industry continued to normalize in the second quarter and, despite difficult market conditions, our performance remains robust.
"In recent years, we have significantly strengthened our two strategic pillars: transport and logistics.
"On that basis, our Group will pursue its transformation, as it continues to expand and to integrate recently acquired subsidiaries, while stepping up investments to decarbonize its activities."
Shipping volumes remained buoyant on the North-South lines, but the Transpacific and Asia-Europe lines were hit by the slowdown in household consumption and dealer inventory drawdowns.
In second-quarter 2023, the Group carried 5.60 million TEUs, down 0.3% on the second quarter of 2022 despite an 11.5% rebound compared with the first quarter of the year, reflecting the seasonal nature of the business but also an upturn in demand.
The stability of the logistics business, in a context of declining trade, reflects both the slowdown in freight markets and the strengthening of the end-to-end supply chain services offered to CMA CGM Group customers through the acquisitions made since second-quarter 2022 of Ingram CLS, Gefco and Colis Privé.
Freight management activities are impacted by the declining market. Contract logistics activities are recovering in Europe but remain generally affected by the weakness of the e-commerce segment, particularly in the United States.
Finished Vehicle Logistics are performing well supported by favourable market dynamics due to the combination of persistent supply chain disruptions and strong demand.
During the second-quarter 2023 the CMA CGM Group submitted an offer to acquire Bolloré Group's freight forwarding and logistics operations, which will strengthen CMA CGM's logistics expertise in a wide range of high value-added sectors.
CMA CGM's logistics operations are set to rank among the world's top five players in transport and logistics.
