The Board of Directors of the CMA CGM Group, a global player in sea, land, air and logistics solutions, met today under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter of 2022.
Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “During the second quarter, we continued to accelerate our strategy and our transformation around our two pillars: shipping and logistics. With the acquisitions of Ingram Micro CLS, Colis Privé and GEFCO and the strategic partnership with Air France-KLM, we have reached a new milestone in offering our customers a service that spans the entire supply chain."
"I would like to thank our 150,000 employees for their exceptional achievements and unfailing dedication. The global decline in consumer spending, which was already perceptible this summer, will lead to more normal international trade conditions in the second half as well as to a downturn in shipping demand. We will continue to invest both in our development and in the energy transition, which is more important than ever.”
Maritime shipping: higher revenue and wider margins
5.6 million TEUs were carried in the second quarter of 2022, down 1.3% from the prior-year period. Volume growth is currently being dampened by the congestion in ports and overland supply chains, which has led to longer vessel transit times.
Revenue from the maritime shipping operations amounted to USD 16.0 billion.
EBITDA rose sharply to USD 9.1 billion for the period, led by the USD 2,850 in average revenue per TEU at a time of rising operating costs (particularly bunker, vessel chartering and port handling costs). In all, operating costs increased by more than 22% year-on-year, with unit bunker costs in particular surging almost 75% over the period.
Logistics: sustained improvement in financial performance
Revenue from logistics operations totaled USD 3.8 billion in the second quarter of the year, while EBITDA came to USD 340 million.
Growth was primarily driven by the maritime and air freight management activities. The contract logistics business continued to recover. Dynamic business performance in e-commerce and other Consumer & Retail segments enabled CEVA logistics to mitigate the adverse impact of the inflationary environment, which is weighing on operations and margins.
Outlook
Inflationary pressures and uncertainties weighing on world trade
The health crisis, the release of pent-up demand as lockdowns eased and the conflict in Ukraine have placed unprecedented strain on the world’s supply chains. The persistence of this acute pressure has impacted both effective capacity in the global fleet and the Group’s operations since the beginning of the year. Widespread port congestion is impacting quality of service, thereby limiting the volumes carried by the ocean-going fleet.
For more information: cmacgm-group.com