A.P. Moller – Maersk (Maersk) has announced a decline in revenues in its Q1 2023 performance report, falling to $14.2 billion from the previous $19.3 billion.
EBITDA decreased to $4 billion from $9.1 billion, and EBIT to $2.3 billion from $7.3 billion.
Ocean revenue decreased by $5.7 billion to $9.9 billion.
Profitability for the quarter was significantly lower compared to Q1 2022, primarily due to lower freight rates and volumes, as demand softened, according to Maersk.
In logistics and services, revenue grew 21 per cent to $3.5 billion driven by the consolidation of several acquisitions.
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Organically, Maersk said Q1 was affected by lower volumes caused by inventory corrections, especially with North American and European retailers, which was partially offset by new commercial wins.
Additionally, underlying business performance was impacted by lower rates in Air Freight and weaker demand in eCommerce.
In terminals, the top line was affected by lower volumes and storage income, both a factor of lower demand and the release of port congestion.
Revenue in this sector decreased to $876 million from $1.1 billion, but strong cost control contributed to continued solid financial performance in terminals, Maersk reported.
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“We delivered a solid financial performance in a challenging market with lower demand caused by a continued destocking,” said Vincent Clerc, CEO of Maersk.
“As we adjust to a radically changed business environment, we continue to support our customers in addressing their supply chain challenges. We are pleased to note that customers continue to value the integrated logistics solutions and close partnership we provide.”
In April, Maersk signed a lease for a 685,000 square feet (63,000 square metre) facility at SEGRO Logistics Park East Midlands Gateway.
More recently, Maersk announced the opening of new Global Service Centres (GSC) for the Americas Region based in Mexico City, Mexico, with a dedicated satellite centre in Santos, Brazil.