A stormy start in 2022 for the French shipowner CMA CGM. In the first quarter, the group reported a net profit of $ 7.2 billion (€ 6.7 billion), or almost $ 80 million (€ 75 million) a day!
Marseille already had ended 2021 in an impressive way, with $ 18 billion (€ 16.8 billion) in profit, with a turnover of $ 56 billion (€ 52.2 billion). However, it has an even better foundation, with net income for the first quarter 3.5 times higher than in 2021, with sales of $ 18.2 billion up 70%.
CMA CGM continues to benefit from the overheating of shipping and the reorganization of global supply chains around Covid, raising its service prices. Despite a 3% decline in shipped volumes, its historical maritime activity – which accounts for 81% of its turnover – is 73% higher than in the first quarter of 2021. To support its growth, the company expanded its fleet by 3 new vessels as well as 5 more chartered vessels. , except 14 used vessels, only in the first quarter. And she has already ordered 69 more new ships.
Watch out for the future
The group’s numbers look good, but CEO Rodolphe Saadé continues to urge caution, as in his 2021 assessment.Continued strong supply chain tensions since the beginning of 2022 continue to weigh on the effective capacity of the global fleet and the group’s operations. The generalization of port congestion reduces the quality of services and limits the volumes transported by the maritime fleet“, He sums up.
Among the risks at the heart of the group’s concerns is a 16% increase in its costs in one year. At present, however, the increase in prices related to waiting times for maritime transport is growing even faster, which allows it to collect new costs.
More generally, the manager fearsthe risk of a worsening global economic situation associated with the pandemic, rising inflation and the war in Ukraine“.”A sharp rise in energy prices, combined with (rising) prices for many raw materials, is burdening household consumption and could worsen the economic situation and the growth prospects of world trade.“, The company specifies in its press release.
Despite everything, the group has 150,000 employeesremains convinced of its financial performance outlook for 2022“.
Diversification is starting to pay off
In addition to maritime activities, the group continues its diversification policy to become one of the world’s leaders in 360 ° logistics, able to manage end-to-end deliveries.
Its airline CMA CGM Air Cargo, launched in early 2021, just on 1 June, received the air carrier’s certificate from the Directorate-General for Civil Aviation (DGAC) on 1 June. In developing this activity, it will rely on a signed long-term strategic partnership with Air France-KLM in Mayin connection with its entry into the airline’s capital. It ensures the creation of a fleet of 12 transport aircraft.by 2026“.
Its logistics company Ceva Logistics has strengthened acquisition at the end of 2021 of CLS activities of Ingram Micro– Turnover rose 57% to $ 3.4 billion (€ 3.2 billion) from January to March. However, its profitability is lower than expected due to the inflation context.
CMA CGM continues its acquisition strategy. The Marseille group bought the French car carrier Gefco in April, taking advantage of the displacement of its Russian shareholder in connection with the war in Ukraine. It also got into his hands French package private at the beginning of the year to develop last mile logistics, a bowstring that was missing from the bow. The ship’s owner also brought in 25 million euros of fresh Brittany Ferries, helping to save Brittany society. In return, he acquired a business partnership so that he could use the cargo space on his ships.