Francophone container shipping and logistics operator CMA CGM has returned to strong profit growth in 2024. EBITDA was up 49.3% y-o-y to $13.45bn on revenues that grew 18.0% to $55.48bn, leading to a margin growth of 5.1 basis points to 24.24%. Both primary divisions, Logistics and Shipping did well in the year, though the majority of the Logistics division’s jump in income and earnings was due to the integration of Bolloré Logistics.
Shipping
Revenues +16.2% y-o-y to $36.49bn
EBITDA +51.9% to $11.24bn
Volumes +7.8% to 23.57m TEU
Though most exposed to geopolitical uncertainties, the Shipping division is back to big profits. Sustained demand drove volume growth and the Red Sea crisis led to longer East-West routes and greater profitability. EBITDA per TEU improved 7.7% y-o-y to $1,549 per unit.
In part helped by confidence in the markets the company serves, CMA CGM has invested almost $20bn in new LNG and methanol powered ships. By 2029 it will have 153 such ships in its fleet, but admits that it will be impacted by the global availability of low carbon fuels such as biogas, biomethanol and synthetic fuels.
At the same time CMA CGM has been following a shipping industry trend in investing in port infrastructure companies. It took a 48% stake in Santos Brasil, Brazil’s premier port infrastructure provider. In 2024 the company also signed a joint partnership agreement with Marsa Maroc to operate part of the West Med Container Terminal and inaugurated the Khalifa Terminal in Abu Dhabi.
Logistics
Revenue +20.9% y-o-y to $18.4bn
EBITDA +28.3% to $1.77bn
Contract logistics is widely held to be a relatively low margin but steady business. In 2024 the majority of income and earnings growth was due to the integration of its largest ever acquisition, Bolloré Logistics, which will help insulate the company from future shocks in the shipping industry. There was organic growth in the logistics business, primarily from its 2023 acquisition GEFCO that saw an improvement in finished vehicle logistics despite difficulties in the global automotive manufacturing sector.
Other business
Revenue +43.3% y-o-y to $2.87bn
EBITDA +87.2% to $441m
In 2024, CMA CGM’s CMA Media acquired France based media outlet, RMC-BFM in July and has now become France’s third largest private media group. This helped the smallest business segment to high double digit growth in earnings.
Uncertainties in the future
The US government’s policy on tariffs will affect global supply chains – how, no one fully understands for the moment. At the same time the Red Sea crisis may abate but things are far from clear at present. CMA CGM CEO Rodolphe Saadé is confident in his workforce and said, “In 2025, in a context of heightened geopolitical tensions and unprecedented uncertainty our Group will continue to strengthen its position. I am confident in our ability to adapt and continue delivering exemplary service to our customers.”
Author – Richard Shrubb
Source: Ti Insight
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