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CMA CGM Group’s net income dropped 50% to $661 million in the second quarter of the year from the same quarter in 2023
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Group revenue was at $13.1 billion, up 6.8%, reflecting stable year-on-year revenue for shipping and logistics
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Operating profit was down 4.3% from the prior year period
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Business volumes increased, driven by sustained demand in maritime shipping amid disruption to major routes
CMA CGM Group net income dropped 50% to $661 million in the second quarter of the year from the same quarter in 2023.
Group revenue was at $13.1 billion, up 6.8%, reflecting stable year-on-year revenue for the shipping business and higher revenue for the logistics business, boosted by the consolidation of Bolloré Logistics since February 29, 2024.
Operating profit (EBITDA) totaled $2.48 billion, 4.3% down from the prior year period from $2.59 billion.
According to a news release, CMA CGM’s income was impacted by its contribution to an endowment fund launched with Bpifrance for the decarbonization of the French shipping industry; a contribution to a major port hub project in the West Indies; and funding of the KYUTAI foundation, an independent European research laboratory dedicated to open science in artificial intelligence.
“Amid sustained demand, our Group delivered a solid performance in the second quarter, with a dynamic shipping business and a growing logistics pillar. We were able to adapt by redeploying capacity in response to the operational challenges caused by major disruptions on the main shipping routes,” said CMA CGM Group chairman and chief executive officer Rodolphe Saadé.
“The Group has made key investments to accelerate the industry’s decarbonization by renewing and upgrading its fleet, and to pursue its digital transformation by leveraging artificial intelligence,” he added.
The second quarter was marked by increased business volumes, driven by sustained demand in maritime shipping amid disruptions to major routes, according to the company.
For shipping, 6.0 million TEUs were carried in the second quarter, up 6.8% from 5.6% from the prior year period.
This was due to buoyant world merchandise trade and demand for cargo shipping, led by sustained household consumption and continued inventory rebuilding, impacting Transpacific and Asia-Europe shipping lines among others.
Consolidated revenue from maritime shipping operations totaled $8.29 billion over the quarter, down 0.8%.
On the other hand, revenue from logistics operations amounted to $4.79 billion in the second quarter of the year. EBITDA totaled $450 million, a 28.8% increase year-on-year.
Revenue from other activities (port terminals, air cargo, media etc.) increased by 23.8% to $601 million. However, EBITDA came to $48 million, representing a 25.5% decrease.
Geopolitical tensions, particularly in the Red Sea, continued to inhibit the fluidity of global trade, creating congestion in certain regions.
At the same time, volumes carried rose sharply compared with the prior year period last year, when US distributors began to draw down their inventories, but also comparable with the first quarter of 2024. This is because growth in Western countries held firm, as did household consumption, while inflation slowed due to the impact of monetary policies.
To support its customers and help alleviate pressure on supply chains, CMA CGM has launched the French Peak Service, an exceptional seasonal shipping line to meet the high demand for shipping between Asia and Europe.
CMA CGM has continued to invest in its industrial capabilities with an order for twelve 15,000 TEU liquefied natural gas (LNG) vessels from Hyundai Heavy Industries. This order is part of the company’s fleet renewal program, in line with the Group’s target of achieving net zero carbon by 2050, from the vessels’ entry to service in late 2027.
Following the integration of its logistics operations, CMA CGM’s logistics arm and Bolloré Logistics will be rebranded under CEVA Logistics.
Lastly, the group recently strengthened its media activities with the completion of the acquisition of RMC BFM on July 2.
