CMA CGM Q3 revenue up 30%, outlook uncertain
Outlook: uncertain economic conditions, normalising trade flows and sharp decline in freight rates
French carrier CMA CGM reported a 30 percent increase in revenue at $19.9 billion for the third quarter ended September 30, 2022 driven by the group's maritime business.
EBITDA increased 29 percent to $9.2 billion with an EBITDA margin of 46 percent, a marginal decline from Q32021," says an official release.
CMA CGM carried 5.7 million TEUs in Q32022, an increase of 4 percent compared to Q32021. Shipping revenue increased 26 percent to $15.7 billion "but down 2 percent compared to the previous quarter, reflecting the decline in spot freight rates that began in the second quarter and continued into the third quarter."
Logistics revenue totaled $4.3 billion while EBITDA was $359 million driven by maritime and air freight activities.
"The CMA CGM Group once again recorded strong results in the third quarter," says Rodolphe Saadé, Chairman and Chief Executive Officer, CMA CGM Group. "Over the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain. Declining demand has prompted a return to more normal international trade flows and a significant reduction in freight rates. In this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions."
CMA CGM Air Cargo continues to expand
CMA CGM Air Cargo, CMA CGM Group's air freight carrier, is expanding services with the recent launch of a new Paris-Hong Kong service, following delivery of its first two Boeing 777 freighters. "Currently composed of six aircraft, the CMA CGM Air Cargo fleet will consist of 12 freighters by 2026."
Outlook
CMA CGM has flagged inflation, slowing consumer spending, economic uncertainty and geopolitical tensions for Q42022. "The Group therefore expects to see a faster return to more normal freight rates in the fourth quarter and lower margins. The Group is therefore closely monitoring the geopolitical developments and their potential impact on the economic outlook but nevertheless remains confident in its financial strength and ability to adapt to the uncertain environment."