French container carrier CMA CGM has announced huge year-on-year increases in its financial figures for the second quarter of the year, reporting a net profit of US$7.6 billion, up from US$3.5 billion in the year-earlier period and also surpassing by US$300 million the first quarter profit.
Additionally, during the period April – June 2022, the Marseille-headquartered company achieved a 57% growth in revenue, reaching around US$19.5 billion and increased its EBITDA by 109.6% to US$9.6 billion, representing an EBITDA margin of 49.2%.
Furthermore, net debt totalled US$5.4 billion on 30 June 2022 (after accounting for current financial investments), down US$1.5 billion from 31 March 2022.
CMA CGM’s financial results:
Although CMA CGM has skyrocketed its financial results, the French box carrier has moved fewer containers in the 2022 second quarter. In particular, the company reported 5.6 million TEUs during the second quarter, which translates to a 1.3% decrease 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,” said the company.
CMA CGM’s financial results of the maritime shipping operations:
CMA CGM expects a shipping slowdown due to inflationary pressures and global uncertainties, which, in recent weeks, have caused a slowdown in consumer spending and therefore a softening in demand for maritime shipping, according to the French carrier.
“In some regions, these developments have led to a decline in spot freight rates,” pointed out CMA CGM and added that “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 French shipping group said the sharp increase in energy costs, combined with rising commodity prices, is weighing on consumer spending and could have a negative impact on the economic situation and the outlook for growth in world trade.
“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,” commented Rodolphe Saadé, chairman and CEO of the CMA CGM Group.
