The CMA CGM Group has reported a robust performance across its businesses during the second quarter of 2023, in line with its first-quarter guidance.
Despite difficult market conditions during the second quarter of the year, the Group’s revenue for the quarter stood at $12.3 billion, mainly driven by its shipping business.
Operating profit, measured by EBITDA, was significantly impacted, coming in at $2.6 billion, down 73 per cent from the second quarter of 2022.
The shipping segment’s performance faced a decline, with consolidated revenue amounting to $8.4 billion, a 47.9 per cent drop from the second quarter of 2022.
EBITDA for shipping was $2.2 billion, reflecting a 76 per cent decrease from the prior-year period. Average revenue per TEU decreased by 10.3 per cent year on year, primarily affecting the Transpacific and Asia-Europe lines due to the slowdown in household consumption and dealer inventory drawdowns.
Despite carrying 5.60 million TEU during the quarter, reflecting an 11.5 per cent rebound from the previous quarter, the overall figure represented a slight 0.3 per cent decline from the second quarter of 2022.
While other activities such as port terminals and CMA CGM Air Cargo reported a decline in revenue to $474 million, the group’s financial strength allowed it to continue investments in supporting the energy transition for transport and logistics.
Looking ahead, the CMA CGM Group acknowledges that the macroeconomic and geopolitical uncertainties, coupled with deteriorating transport markets, could present challenges in the second half of 2023.
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 normalise 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 decarbonise its activities.”