HMM has announced its revenue fell 58% in the first quarter of the year to US$1.56 billion (KRW 2,082 billion) from US$3.68 billion (KRW 4,919 billion) in the same period in 2022.
Additionally, the South Korean company’s operating profits dropped 90% in Q1 2023 to US$230 million (KRW 307 billion), while HMM’s net profit was US$210 million (KRW 285 billion)vfrom US$2.34 billion (KRW 3,132 billion) in the same months last year.
HMM said the easing of global supply chain pressures has affected revenue and profits and has led to the normalisation of the container shipping market. “Despite lower freight rates, container and bulk businesses realised profits, mainly driven by service realignment and reduced operating costs,” noted the ocean carrier.
The company added that the high inflation pressure due to the rising cost of energy and raw material has remained, causing higher interest rates and decreased demand. “This downward trend in the global economy is expected to continue with no encouraging sign of restoring consumer confidence in the near term,” pointed out HMM.
The Seoul-based box line highlighted it will focus on a wide range of cost-cutting measures and enhance operational efficiency to make its business competitive “amid market volatility and widespread uncertainties”.
In addition, HMM aims to take a comprehensive approach to accelerate Environmental, Social and Governance (ESG)-oriented management by reinforcing its environmental competence with constant investment and establishing the latest Information Technology (IT) infrastructure.
