The CMA CGM Group has released its financial statement for the first quarter of 2023, posting $12.7 billion in revenues.
The figure stands for a 30.2 per cent drop compared to the same period the year prior, down around $5.5 billion.
Despite the current challenges faced by the industry, the company’s Chairman and CEO, Rodolphe Saadé, expressed satisfaction with the solid performance during this period.
“After two exceptional years, our industry has entered a phase of normalisation due to the slowdown in global growth, inflation and a destocking phenomenon that is continuing in many parts of the world,” he commented.
“Despite this deteriorated context, our first-quarter results are extremely solid. They are the fruit of our investments – more than $30 billion committed over the past two years – which enable us to constantly broaden and strengthen our range of transport and logistics solutions for our customers.”
The company reported an EBITDA of $3.4 billion, representing a 61.3 per cent decrease, and a margin of 27 per cent, down 21.7 points.
The net income, attributable to the Group, reached $2 billion.
The company’s financial resources, excluding debt, increased to $6.2 billion by the end of March 2023.
In the maritime shipping sector, the company recorded a consolidated revenue of $8.9 billion, a decline of 40.3 per cent compared to the first quarter of 2022. The EBITDA for this segment amounted to $3 billion, down 64.3 per cent from the previous year.
The average revenue per TEU dropped by 37 per cent to $1,766.
CMA CGM said the decline in the number of TEU carried, which stood at 5 million in the first quarter of 2023, was influenced by factors such as reduced household consumption in Europe and North America due to price inflation and increased spending on services.
Inventory adjustments and congestion issues also impacted imports, particularly from Asia.
CMA CGM said it remains confident in its ability to navigate these challenges due to its integrated transport and logistics strategy and strong financial position.
Moving forward, the company plans to focus on integrating recent acquisitions while maintaining cost control measures.
The first quarter of 2023 is anticipated to be the strongest of the year as the company’s financial results gradually return to normal.
The move came after a period of exclusive discussions previously announced; Bolloré Group has now accepted the proposal.