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Full-year 2022 revenue stood at US$74.5 billion, up 33% y-o-y, led by maritime shipping unit
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EBITDA came to $33.3 billion, driving up EBITDA margin 3.4 percentage points to 44.7% y-o-y
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Group net income amounted to $24.9 billion
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CMA CGM boosted its balance sheet with net debt holding steady at $7.7 billion as of December 31, 2022. The group has $11.6 billion in short-term financial assets
CMA CGM netted US$25B in an exceptionally strong performance in 2022 as the French transport and logistics giant’s revenue climbed 33% year on year to US$74.5B, led by its maritime shipping business.
Group net profit rose 6.98% y-o-y despite a 3.67% drop in the fourth quarter to $3.04 billion as shipping rates slid.
Group development accelerated last year, with the company reinvesting almost 90% of its 2022 net profit in its industrial assets and capabilities, while strengthening its balance sheet and enhancing its financial flexibility.
“Our group achieved exceptional, historic results in 2022 that have enabled us to invest significantly in operations across our business, step up our energy transition and share the created value with our employees,” CMA CGM Group chairman and chief executive Rodolphe Saadé said in a press statement.
“As trade returns to normal and freight rates decline, our strategy and recent investments will prove all the more relevant and allow us to look forward to 2023 with confidence.”
Saadé said the group will leverage on its financial strength and entrepreneurial spirit to continue to develop its transport and logistics operations “to meet the needs of our customers, who expect a group like ours to deliver the best service at the lowest possible cost, with the smallest environmental footprint.”
CMA CGM made investments aimed at accelerating its energy transition, strengthening its social engagement and supporting corporate assets in its strategic markets, particularly in France, even as shipping rates began to fall in the first quarter and continued to slide as the year closed. These include terminals, CMA CGM Air Cargo and other group investments.
A marked slowdown in Q4 2022 is expected to continue in 2023 as inflationary pressures weigh on consumption, the company said in its annual results report.
Strong shipping revenue, better logistics performance
Maritime shipping, CMA CGM’s traditional income generator, produced strong revenue growth in 2022, despite its fleet transporting 21.7 million twenty-foot equivalent units (TEUs), 1.3% fewer than in 2021. Revenue from maritime shipping operations rose 30.1% y-o-y to $58.9 billion.
EBITDA, or earnings before interest, tax, depreciation and amortization, stood at $31.6 billion, versus $22.1 billion in 2021. EBITDA margin grew 5 percentage points to 53.7%, lifted by the $2,771 average revenue per TEU during the year.
Revenue from the logistics business shot up 47.6% y-o-y to $16.1 billion on the back of robust expansion in the freight management business, particularly in the first half, as well as by recent acquisitions. EBITDA for the year was $1.22 billion, up 38.7% y-o-y.
Geopolitical tensions, economic uncertainty, freight rate slide
CMA CGM said H2 2022 trends remain at play in 2023 as market conditions in the transport and logistics industry continue to deteriorate. The group expects supply-demand balance to remain challenging as capacity is expected to increase in both maritime shipping and air freight.
Easing of port congestion and delivery of new vessels later this year are expected to accelerate the fall in ocean freight rates while the return of passenger belly capacity is seen to keep airfreight rates under pressure. These come as demand prospects seem uncertain amid dealer inventory destocking in the United States and consumer purchasing power erodes.
The group said certain macroeconomic signals are stabilizing. In the US, consumer spending and the labor market remain resilient despite the very aggressive monetary tightening by the Federal Reserve in recent months.
In the European Union, recession has been avoided for the moment. In Southeast Asia and Latin America, remain strong, it added.
CMA CGM said it is committed to achieving net zero carbon by 2050 and intends to accelerate the energy transition in shipping and logistics. The group claimed it has reduced carbon emissions per container carried by 50% since 2008.
