Although the French liner shipping company CMA CGM transported more cargo in the first quarter of 2024 than a year ago, revenue still fell. EBITDA fell by 30%.
Revenue in the first quarter fell by 7% to US$11.8bn. EBITDA fell by 30.3% to US$2.89bn, while the EBITDA margin of 20.2% represents a deterioration of 6.8 points. At the end of the first quarter, the French shipping company achieved a net profit of US$785m, compared to a net profit of US$2.01bn in the first quarter of 2023 [ds_preview].
A total of 5.6 million TEU were transported in the first quarter of this year, 11.7% more than in the same period last year. Consolidated revenue from the ocean shipping business amounted to US$7.9bn in the quarter under review, down 11.4% from the previous year. EBITDA amounted to US$1.9bn, 35.8% less than in the first quarter of 2023. The EBITDA margin was 24.8%, a decrease of 9.4 points. Average revenue per TEU amounted to US$1,400, 20.7% below the previous year’s figure.
“In the first quarter, the Group’s logistics activities continued their growth, particularly due to the consolidation of Bolloré Logistics as of February 29 and good momentum in the contract logistics, finished vehicle logistics and ground segments, especially in Europe,” it says. Turnover from logistics activities amounted to US$3.9bn in the first quarter of the year. EBITDA reached US$361m, an increase of 6.9% compared to the first quarter of 2023.
Revenue from other activities (port terminals, CMA CGM Air Cargo, media, etc.) increased by 45.4% to US$600m. EBITDA increased by 43.6% to US$79 million due to the inclusion of Port Liberty in the scope of consolidation and the recovery of volumes in the terminal business
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group: “Against the backdrop of the normalisation of the industry, our Group has demonstrated its flexibility and resilience in adapting to new market conditions. Our shipping division has delivered a solid performance, boosted by the restocking in China and the United States. In our logistics business, the acquisition of Bolloré Logistics has given us the critical mass we need to better withstand economic changes. Even in 2024, which remains uncertain due to the crisis in the Red Sea, CMA CGM will meet the needs of its customers as well as possible.”
In its outlook, the shipping company refers to the uncertainties in the macroeconomic and geopolitical environment, which could continue to lead to fluctuations in the transportation and logistics market. In addition, the commissioning of newbuildings is expected to exceed the forecast demand, which will ultimately affect the balance between supply and demand and therefore freight rates. “In this environment, cost control, punctuality and the level of service offered to customers will be key factors for competitiveness and differentiation,” says CMA CGM.
