CMA CGM sees 6.8% revenue growth in Q2 2024

FRANCE – The CMA CGM Group has reported a solid performance despite ongoing global disruptions in its second-quarter 2024 review with a revenue of USD 13.1 billion, reflecting a 6.8% increase from the previous year

The results were discussed at a board meeting chaired by Rodolphe Saadé, Chairman and CEO of the CMA CGM Group.

Saadé highlighted the Group’s ability to adapt to challenges and the strategic investments made to advance sustainability and digital transformation.

According to the report, the growth was driven by a steady shipping business and a significant boost in logistics, especially following the integration of Bolloré Logistics.

The Group’s EBITDA totaled USD 2.48 billion, though this was a 4.3% decrease compared to the same period last year, reflecting pressures on margins.

The net income for the quarter stood at USD 661 million, down from USD 1.33 billion a year earlier. The drop was partly due to substantial contributions to various initiatives, including a fund for decarbonizing French shipping and supporting the KYUTAI foundation for AI research.

CMA CGM’s shipping sector handled 6.0 million TEUs (Twenty-foot Equivalent Units) during the quarter, a 6.8% increase from the previous year.

Despite the growth, the maritime segment saw a slight decline in revenue to USD 8.29 billion, and EBITDA fell by 9.0%.

The average revenue per TEU decreased by 7.1%, reflecting the impact of high spot freight rates and ongoing geopolitical tensions, particularly in the Red Sea region.

On the logistics front, the integration of Bolloré Logistics has strengthened the Group’s position. Revenue from logistics activities hit USD 4.79 billion, with a notable 28.8% increase in EBITDA.

This growth highlights the robust performance in Contract Logistics, Finished Vehicle Logistics, and Road Haulage.

CMA CGM has also been expanding its capabilities. The Group placed an order for twelve 15,000 TEU LNG vessels, set to join the fleet by late 2027 as part of its commitment to achieving Net Zero Carbon by 2050.

The recent acquisition of RMC BFM further diversifies the Group’s media interests, now operating under CMA Media.

The CMA CGM Group remains focused on maintaining operational discipline and investing in industrial capabilities and digital solutions.

As geopolitical and economic uncertainties persist, the Group aims to sustain high service levels and continue its efforts in sustainability and digitalization.

Saadé concluded, “Our results reflect our ability to navigate through ongoing global disruptions while advancing our goals for a more sustainable and digitally enhanced future.”

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.