The CMA CGM Group has announced a significant decline in net income, plummeting 85% to $3.64 billion for the fiscal year 2023 compared to $24.88 billion in the preceding year.
The company's revenue also experienced a notable downturn, decreasing by 37% to $47.02 billion from $74.50 billion in 2022.
The performance is said to be primarily attributed to the challenging conditions prevailing in maritime shipping markets, as stated in an official press release.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $9 billion, marking an EBITDA margin of 19.2%, which witnessed a decline of 25.5 points from the previous year.
Revenue generated from shipping operations witnessed a substantial drop of 47%, reaching $31.4 billion, despite a marginal increase in the volume carried, standing at 21.8 million TEUs.
The EBITDA for shipping operations stood at $7.4 billion compared to $31.6 billion in the preceding year, with the EBITDA margin contracting by 30.1 points to 23.6%, mainly influenced by the 47% decline in average revenue per TEU for the year, which amounted to $1,437.
Moreover, revenue from the logistics business experienced a slight decline of 5.5%, totaling $15.2 billion, primarily attributed to the normalisation of operating conditions in freight management activities.
The press release highlighted that the EBITDA for logistics reached $1.4 billion, marking a 12.5% increase compared to 2022, with an EBITDA margin of 9%, reflecting a positive turnaround in contract logistics and outstanding performance in finished vehicle logistics.
In addition to core operations, other activities including terminals, CMA CGM Air Cargo and group investments recorded an 11% increase in revenue, reaching $2 billion, while the EBITDA amounted to $236 million, marking a 47% decline year-on-year.
CMA CGM Air Cargo continued its expansion throughout the year, now operating a fleet of five aircraft, with plans to reinforce its fleet in 2024 with the delivery of two Boeing 777F freighters.
