CMA CGM Group Q2 net revenue up 7% on stable operations

CMA CGM Group reported a 50 percent decline in net income at $661 million for the second quarter of 2024 compared to $1.3 billion in Q22023 on various investments including contribution to the endowment fund launched with Bpifrance.

The net income was also impacted by the contribution to the major port hub project in the West Indies, and the funding of the KYUTAI foundation, the first independent European research laboratory dedicated to open science in artificial intelligence (AI), says an official release.

"Through these contributions, the CMA CGM Group is committed to the decarbonisation and digitisation of maritime shipping and logistics to the benefit of the public interest."

Revenue increased seven percent to $13.1 billion, "reflecting stable year-on-year revenue for the shipping business and higher revenue for the logistics business, boosted by the consolidation of Bolloré Logistics since February 29, 2024."

The CMA CGM Group has continued to invest in its industrial capabilities with an order for 12 15,000 TEU liquefied natural gas (LNG) vessels from Hyundai Heavy Industries. This order is part of CMA CGM's fleet renewal programme, in line with the Group's target of achieving Net Zero Carbon by 2050, from the vessels' entry to service in late 2027.

Shipping
In all, 5.98 million TEUs were carried in the second quarter of 2024, up seven percent from the prior-year period, the release added. "The increase is due to buoyant world merchandise trade and demand for cargo shipping, led by sustained household consumption and continued inventory rebuilding, impacting Transpacific and Asia-Europe shipping lines among others."

Consolidated revenue from maritime shipping operations was $8.29 billion, down 0.8 percent from the second quarter of 2023. Average revenue per TEU amounted to $1,385, down 7.1 percent year on year.

Logistics
Revenue from logistics operations was $4.8 billion, an increase of 27 percent. "In the second quarter, the Group’s logistics activities continued to grow, boosted in particular by the contribution of Bolloré Logistics since its consolidation on February 29 and good momentum in contract logistics, finished vehicle logistics and road haulage, especially in Europe."

Other businesses
Revenue from other activities (port terminals, CMA CGM Air Cargo, media) increased by 24 percent to $601 million.

Rodolphe Saadé, Chairman and Chief Executive Officer, CMA CGM Group says: "Amid sustained demand, our Group delivered a solid performance in the second quarter with a dynamic shipping business and a growing logistics pillar. We were able to adapt by redeploying capacity in response to the operational challenges caused by major disruptions on the main shipping routes. The Group has made key investments to accelerate the industry's decarbonisation by renewing and upgrading its fleet, and to pursue its digital transformation by leveraging artificial intelligence."