CMA CGM 2021 revenue up 78% to $56bn on shipping boost
Shipping revenue was up 88% to $45.3 billion, and EBITDA was $22.1 billion, up over 300% from 2020
French carrier CMA CGM reported a 78 percent increase in revenue to $56 billion in 2021, mainly driven by near doubling (up 88 percent) of shipping revenue.
"EBITDA came in at $23.1 billion, representing an EBITDA margin of 41.3 percent (a 21.8-point increase compared with 2020)," according to an official release.
Net income was $17.9 billion. "The Group has decided to reinvest 90% of the net income into the Group's continued development, the energy transition and its employees. "
Net debt declined $9.2 billion year-on-year and amounted to $7.7 billion as of December 31, 2021, mostly driven by a high level of free cash flow generation.
"Driven by extremely strong demand conditions, we recorded excellent results in 2021," says Rodolphe Saadé, Chairman and Chief Executive Officer, CMA CGM Group. "During this period, we have invested massively in our industrial assets (fleet of vessels, containers and aircraft, terminals and warehouses) to support our customers in their logistics challenges. We have accelerated the development of our Group through strategic acquisitions. Our teams have remained mobilised and demonstrated an exceptional ability to adapt.
"In 2022, we will continue our transformation around our two pillars, transport and logistics, and accelerate our energy transition. We are, of course, continuing to monitor the situation in Ukraine very closely. We are mobilising to ensure the safety of our staff members on site and we are making our air capacity available to transport emergency humanitarian supplies to Poland, in coordination with the French authorities."
Shipping numbers skyrocket: In 2021, volumes carried amounted to 22 million TEUs, up 5 percent compared with 2020, which was negatively impacted by the COVID-19 pandemic. "This increase reflects a dynamic start to the year followed by a second half where volumes were constrained by the lengthening of transit times, due to port and inland infrastructure congestions in certain parts of the world. "
Revenue was up 88 percent to $45.3 billion compared with 2020. EBITDA was $22.1 billion, up over 300 percent compared with $5.3 billion in 2020. EBITDA margin increased by 26.5 points to 48.7 percent, driven by average revenue per TEU over the year of $2,055 "in a context also marked by a sharp rise in operating costs: unit costs in the fourth quarter were up by almost 30% compared to the same period of 2020 due in part to higher energy, handling and chartering costs."
Logistics revenue increased 47 percent to $10.9 billion, driven by shipping and air freight activities "as well as the continued recovery of the contract logistics business. CEVA Logistics pursued its turnaround in line with its transformation plan." EBITDA reached $882 million, representing a 44 percent increase over 2020."
CMA CGM Air Cargo: Launched in February 2021, CMA CGM Air Cargo "marks a new phase in the strategic move to provide the Group's customers a complete offering that combines shipping and logistics services. The Group has invested in a fleet that will include at least 10 aircraft by 2026
* Four Airbus A330-200F aircraft, currently in operation;
* Two new Boeing 777F aircraft, to be delivered in spring 2022; and
* Four new Airbus A350F aircraft are scheduled to enter the fleet between 2025 and 2026."
The Group has decided to make CMA CGM Air Cargo a French freight airline, and has filed an application for an Air Operator Certificate (AOC) with the French Civil Aviation Authority (DGAC — Direction générale de l'aviation civile française).
Outlook 2022: Healthy global trade since the onset of 2022 but with geopolitical uncertainties, says CMA CGM in its annual results.
"Tensions in global supply chains have continued to weigh on the effective capacity of the global fleet since the start of 2022, and on the Group's operations. As a result, the Group has further increased its fleet capacity, and plans to allocate nearly $9 billion to enhancing its portfolio of assets (including owned and chartered containers and vessels, excluding acquisitions).
"Following the acquisition of Fenix Marine Services on January 4, the Group expects to close the Ingram CLS and Colis Privé transactions by the summer of 2022 in order to strengthen its logistics solutions, particularly in the of e-commerce space."
The Group, it said, "is closely monitoring developments in the current geopolitical landscape and has taken the decision to suspend all bookings to/from Russia, Ukraine and Belarus."
Although the decisions taken thus far have no material impact on the Group's performance, the statement said, but added: "it is difficult to assess yet the impact of a further deterioration in the geopolitical environment, the potential macroeconomic consequences and the implications of the measures that may have to be taken by the Group."