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CMA CGM reports 26% YoY EBITDA increase in Apr-Jun quarter

September 7, 2020: The French shipping & logistics company CMA CGM announced the second quarter financial results for 2020 with $7 billion revenue, down 9 percent compared with the second quarter of 2019.

During the second quarter of 2020, the CMA CGM Group posted positive net income, Group share of $136 million, up sharply, compared with a loss of $109 million during the second quarter of 2019, and a benefit of $48 million during the first quarter of 2020.
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During the second quarter of 2020, the CMA CGM Group posted positive net income, Group share of $136 million, up sharply, compared with a loss of $109 million during the second quarter of 2019, and a benefit of $48 million during the first quarter of 2020.

September 7, 2020: The French shipping & logistics company CMA CGM announced the second quarter financial results for 2020 with $7 billion revenue, down 9 percent compared with the second quarter of 2019.

EBITDA increased 26.3 percent compared with the second quarter of 2019, and reaching more than $1.2 billion. The EBITDA margin posted 7.2 percent (vs. 12.4 percent during the second quarter of 2019). The operating margin was $530 million, i.e., 7.6 percent, versus $286 million (3.7 percent) for the second quarter of 2019.

During the second quarter of 2020, the CMA CGM Group posted positive net income, Group share of $136 million, up sharply, compared with a loss of $109 million during the second quarter of 2019, and a benefit of $48 million during the first quarter of 2020. The Group’s operating performance generated operating cash flow in excess of $1.1 billion.

Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group, said, “Despite the Covid-19 pandemic, our Group reported excellent results during the 2nd quarter, thus strengthening our financial structure. Thanks to our agile business model and synergies between our shipping and logistics business activities, we were able to adapt our service offerings to meet our customers’ fast-changing needs. We have also significantly reduced our costs and benefited from the drop in oil prices. CEVA Logistics’ turnaround plan is underway and in line with our expectations. During this public health crisis, preserving the safety of our employees was a top priority. Our teams have been working hard to ensure the Group’s and customers’ business continuity. Our expertise has been especially useful in combating Covid-19 by developing sea and logistical bridges to supply essential medical equipment. Third-quarter results should mark a new improvement in our performance.”


Q2 2019

Group

Q2 2020

Group


Change

Revenue, in $billion

7.699

7.004

(9.0) percent

EBITDA, in $million

954

1.205

26.3 percent

EBITDA margin percent

12.4 percent

17.2 percent

+ 4.8 pts

Net Income, Group share, in $million

(109)

136

+ 246

Net cash flow from operating activities

811

1.114

+303

Shipping: EBITDA growth of 30 percent
Volumes carried during the second quarter of 2020 were down 13.3 percent compared with the second quarter of 2019. As a result, revenue for the quarter was down 10.9 percent compared with the second quarter of 2019, totaling $5.3 billion for shipping, thanks to average revenue per TEU (twenty-foot equivalent unit) of $1,112, up 2.8 percent year-on-year.

Shipping EBITDA grew by 30 percent during the second quarter of 2020 at $1,052 million (vs. $808 million during the second quarter of 2019). The operating margin was up an impressive 86 percent to $497 million, i.e., 9.3 percent.

Unit cost by TEU was down 4.6 percent compared with the second quarter of 2019, at $892 due to the decline in oil prices, the Group’s cost-cutting initiatives and the reduction in the fleet of vessels and containers deployed. CMA CGM demonstrated its ability to rapidly adapt its deployed capacity to demand, in line with the discipline seen more generally across all industry operators.


Q2 2019

Shipping

Q2 2020

Shipping


Change

Volume carried, in million TEUs

5.516

4.781

(13.3) percent

Revenue, in $billion

5.968

5.318

(10.9) percent

EBITDA, in $million

808

1.052

30.3 percent

EBITDA margin percent

13.5 percent

19.8 percent

+6.2 pts

Net Income, Group share, in $million

(68)

145

+ 213

Logistics: 78 percent recovery in operating margin
The Group’s logistics segment demonstrated its resilience during the past quarter, despite revenue being down 4.7 percent at $1.7 billion, also affected by adverse FX movements. EBITDA increased to $153 million, i.e., +4,1 percent compared with the second quarter of 2019, despite the negative impact of the health crisis on its results estimated at $7 million. This limited impact underscores the success of the wide range of measures implemented to offset the negative impact of the public health crisis.These results benefitted from the strong airfreight business thanks to air charters compensating the absence of regular capacity. Ground activities progressed further on their recovery. This performance offset the weakness of sea freight. The results of contract logistics were penalized during the quarter by the pandemic, which led to the closure of many sites.

The operating margin is strongly growing by 78 percent to $40 million.

Logistics net loss continued to recover during the second quarter, reaching $-1 million, compared with a net loss of $32 million during the second quarter of 2019.


Q2 2019 CEVA

Q2 2020

CEVA


Change

Revenue, in $billion

1.816

1.730

(4.7) percent

EBITDA, in $million

147

153

4,1 percent

EBITDA margin percent

8.1 percent

8.8 percent

+0.7 pts

Net Income, Group share, in $million

(32)

(1)

+ 31

Simplified shipping service offering
After the Asia – India and Latam trade lanes transfer, the Group announced early July that CMA CGM will become the sole carrier on the Transpacific trade. This decision aims at simplifying the product offering while optimizing the cost base and adapting to the current economic and trade environment.

With this new development, the Group simplifies its brand strategy: CMA CGM becomes the sole global carrier supported by expert brands:

APL, as the expert in U.S. Government cargo;
ANL, as the leader in Oceania;
CNC, as the intra-Asia short-sea specialist;
Mercosul Lines, as the Brazilian cabotage expert;
Containerships, as the multimodal transport intra-European



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