2022 CMA CGM Group annual financial results

March 7, 2023

By Transport Intelligence

In 2022 CMA CGM Group pursued its strategy of strengthening its shipping, port, logistics and air freight capabilities while undertaking a massive commitment to the energy transition. To this end, the Group reinvested almost 90% of its 2022 net profits in its industrial assets and capabilities while strengthening its balance sheet and enhancing its financial flexibility.

Full-year 2022 revenue stood at USD 74.5bn, a 33% increase versus 2021, led by the Group’s maritime shipping business. EBITDA came to USD 33.3bn, representing an EBITDA margin of 44.7% or 3.4 points higher than the year before. Net income, Group share amounted to USD 24.9bn for the year.

The Group continued strengthening its balance sheet, with net debt holding steady at USD 7.7bn as of December 31, 2022. In addition, the Group has USD 11.6bn in short-term financial assets.

Shipping

For the maritime shipping industry, 2022 was a year of contrasting halves. Behind the relative stability in full-year volumes transported by the Group (down 1.3% YoY) lay significant disparities between the first and second halves. 

In 2022, 21.7m TEUs were transported, down 1.3% from 2021. Maritime shipping operations’ revenue rose 30.1% year-on-year to USD 58.9bn. EBITDA stood at USD 31.6bn versus USD 22.1bn in 2021. EBITDA margin widened by five points to 53.7%, lifted by the USD 2,771 average revenue per TEU during the year.

Logistics

In 2022, the CMA CGM Group continued developing an integrated suite of logistics solutions to support its customers’ supply chains. Following the acquisition of CEVA Logistics in 2019, CMA CGM accelerated its transformation in 2022 with the completion of three strategic acquisition:

• Ingram Micro’s Commerce & Lifecycle Services business provides end-to-end e-commerce logistics solutions, including warehousing, inventory management, shipping and returns. The acquired assets represented an estimated USD 1.8bn annual revenue in 2021 and 11,500 employees in 59 warehouses worldwide, with a strong presence in the United States and Europe.
• Colis Privé is a specialist in home delivery and parcel pick-up in France, Belgium and Luxembourg.
• GEFCO is a European leader in automotive logistics, focusing on finished vehicles and other contract logistics and ground transport services

2022 revenue from the logistics business rose by a steep 47.6% to USD 16.1bn versus 2021. Growth was supported by robust expansion in the freight management business, particularly in the first half, and by recent acquisitions. EBITDA ended the year at USD 1,223m, a 38.7% increase compared to 2021.

Air freight

In line with its commitment to making CMA CGM AIR CARGO a French air freight carrier with a fleet of 12 aircraft by 2026, the Group obtained its Air Operator Certificate (AOC) from the French Civil Aviation Authority (DGAC) on June 1, 2022.

• Following the delivery of two Boeing 777Fs, CMA CGM AIR CARGO began operating from its new base at Paris Charles de Gaulle airport in early June.
• Regular service is now offered from Paris-CDG to Hong Kong, Chicago, Miami and Shanghai.

CMA CGM signed a long-term strategic air freight partnership with Air France-KLM to drive quicker growth in the airfreight business.

• The exclusive commercial partnership, which would start operations in April (pending regulatory approvals), will enable the parties to jointly market their air cargo networks, full-freighter capacity and dedicated services to build an increasingly competitive array of solutions, thanks to the expertise and global footprint of Air France-KLM and CMA CGM.
• As part of the agreement, the Group acquired a 9% stake in Air France-KLM, becoming its largest private shareholder, and Rodolphe Saadé became a member of the Air France-KLM Board of Directors.

Investments

The Group owns equity stakes in over 56 port terminals and projects worldwide. In 2022, CMA CGM stepped up its investments in industry-leading infrastructure to continue supporting growth in its shipping lines and enhance the quality of its customer service.

The Group now owns 100% of the Fenix Marine Services (FMS) terminal in the Long Beach/Los Angeles port area, the US’s leading West Coast import gateway; it has started its 10-year operation to manage, operate and maintain the Beirut container terminal; and has been awarded the concession for the Nhava Sheva terminal in India, with its partner JM Baxi.

Late in the year, CMA CGM announced the acquisition of two strategic terminals at the Port of New York, GCT Bayonne and GCT New York, which have a combined capacity of 2m TEUs per year with potential for further expansion up to almost double the current capacity. The closing of this transaction remains subject to regulatory approvals.

“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. 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. Leveraging our financial strength and entrepreneurial spirit, we will continue to develop our operations in transport and logistics 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”, said Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group.

Source: CMA CGM