CMA CGM posts Q1 2023 financial results
CMA CGM's revenue stood at USD 12.7 billion in the first quarter of 2023, driven mostly by the Group’s maritime shipping business, according to the company's release. EBITDA came to USD 3.4 billion, representing a 61.3% decrease and an EBITDA margin of 27%, down 21.7 points.
Net income, Group share amounted to USD 2.0 billion. Financial resources net of debt totalled USD 6.2 billion on March 31, 2023, up USD 1.5 billion from December 31, 2022.
Shipping Shipping Consolidated revenue from maritime shipping operations amounted to USD 8.9 billion, down 40.3% from first-quarter 2022. EBITDA totalled USD 3,0 billion, 64.3% lower than in first-quarter 2022. EBITDA margin came in at 34.4%, down 23.1 points.
Average revenue per TEU amounted to USD 1,766, down 37% from first-quarter 2022. In all, 5.0 million TEUs were carried in the first quarter of 2023, down 5.3% from the prior-year period. This decline in the first quarter of 2023 is attributable to several factors:
-household consumption of goods in Europe and North America has fallen sharply amid i) price inflation and ii) a rebound in consumer spending on services, especially tourism, leisure, etc.
-inventory adjustments in these regions continued, weighing on imports, especially from Asia, particularly in the retail and lifestyle sectors.
-the relatively brisk activity in regions such as Latin America and Africa, together with eased congestion, were insufficient to offset the decline on the main East-West routes.
Revenue from logistics operations totalled USD 3.9 billion in the first-quarter of the year. EBITDA stood at USD 343 million, a 36.9% increase on first-quarter 2022. This growth in activity reflects the inclusion of the acquisitions of Ingram CLS, Gefco and Colis Privé in the scope of consolidation as from the second-quarter of 2022, while the sea and air freight activities were simultaneously returning to normal in line with market dynamics.
The various acquisitions have strengthened CMA CGM's offering of end-to-end supply chain services for its customers. In the first-quarter of 2023, the CMA CGM Group also signed an agreement with La Poste group to establish a closer business relationship capitalizing on their respective expertise in parcel delivery, transportation and storage.
Revenue from other activities (port terminals, CMA CGM Air Cargo, media etc.) increased by 5.3% to USD 405 million. EBITDA came in at USD 45 million, down 47%, in particular reflecting the easing of port congestion.
