CMA CGM's revenue up 38.5% to USD 15.8 bln in Q3 2024
The Board of Directors of the CMA CGM Group met under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the third quarter of 2024.
Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said:
“In a context of geopolitical and economic uncertainties, our Group has delivered solid performances in the third quarter, with a very dynamic maritime activity and a logistics pillar that continues its transformation. Thanks to the commitment of all our teams, we have successfully adapted our offering and made structural investments, particularly in terminals. This quarter also marked an important step in the deployment of artificial intelligence across our activities to continue enhancing the quality of service for our customers.”
Volumes carried on the main shipping routes remained very high over the third quarter as a result. The strong demand was mainly attributable to anticipation and inventory rebuilding in an environment still roiled by geopolitical tension, the prospect of port strikes on the US East Coast and the US presidential election on 5 November.
The rerouting of vessels via the Cape of Good Hope to bypass the Red Sea has continued to impede the fluidity of global trade, resulting in longer transit times and reduced available shipping capacity.
The CMA CGM Group continued to strengthen its end-to-end logistics operations with the signing of an agreement to acquire a stake of around 48% in Santos Brasil, the leading terminal operator in Brazil and the owner of South America’s largest container terminal.
The Group also concluded an agreement to create a joint venture between CEVA Logistics and Almajdouie Logistics in Saudi Arabia. These two major agreements were part of a particularly transformative year for the Group, with Bolloré Logistics entering in the scope of consolidation since February 2024.
The Group has committed USD 18 billion to order 131 vessels capable of running on low-carbon energy (biomethane, biomethanol and synthetic fuels). The vessels will be operational by 2028. Twelve of these new vessels, powered by liquefied gas (LNG, biomethane, e-methane), joined the fleet in the third quarter of 2024.
The CMA CGM Group has signed a memorandum of understanding with SUEZ to step up biomethane production in Europe and the low-carbon transition of maritime shipping. The MOU provides for the production of up to 100,000 tons of biomethane per year by 2030.
The Group has also signed a strategic partnership with Google to put artificial intelligence at the center of all its maritime, logistics and media operations. By drawing on Google's AI solutions and experts, CMA CGM will be able to equip its employees with decision-making tools.
Group revenue stood at USD 15.8 billion in the third quarter of 2024, up 38.5%, compared with the third quarter of 2023, driven mainly by the shipping business. EBITDA totaled USD 5.0 billion and the margin came in at 31.4%, up 14.0 points.
In all, 6.0 million TEUs were carried in the third quarter of 2024, up 5.5% from the prior-year period. The increase can be explained by strong demand over a period that proved dynamic for global trade. Shipping capacity continued to be limited by the rerouting of vessels via the Cape of Good Hope and a degree of anticipation in an uncertain global context. The strong demand amplified the usual peak season, and also caused it to begin earlier than usual.
Revenue from maritime shipping operations amounted to USD 10.9 billion over the quarter, up 43.4% from third-quarter 2023. EBITDA came to USD 4.4 billion and the EBITDA margin came in at 40.2%. Average revenue per TEU amounted to USD 1,798.
In the third quarter, the Group's logistics activities continued to grow, boosted in particular by Contract Logistics and perimeter effects related to the integration of Bolloré Logistics in the scope of consolidation since February 2024.
Revenue from logistics operations totaled USD 4.8 billion in the third quarter. EBITDA stood at USD 459 million, a 32.8% increase on third-quarter 2023.
Revenue from other activities (port terminals, CMA CGM Air Cargo, media etc.) increased by 35.4% to USD 749 million, boosted by perimeter effects. EBITDA came to USD 148 million, representing a 70.5% increase.
