- Growth in volumes (+9.6%) and revenue (+7.4%)
- Core EBIT margin (1.2%) impacted by rising oil prices (+27.7% over a year)
- Supportive market development in the third quarter
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented on the results: “Over the second quarter CMA CGM has recorded a core EBIT margin close to the first quarter as well as a positive net income in spite of a sharp increase in fuel prices. The strong volume growth demonstrates our commercial strength and the quality of our service offering. The acquisition of a 25% stake in CEVA is an important step in our strategy to complement our transport offering with logistics services. We are confident for the second half of the year. We anticipate an improved operating margin thanks to the rise in freight rates and sustained volumes.”
Q2 2018 BUSINESS AND FINANCIAL PERFORMANCE
Revenue increase driven by volume growth
In the second quarter of 2018, the volumes transported by CMA CGM increased by +9.6%, higher than the industry growth. This progress can be explained by the strength of the Transpacific and Asia/Gulf lines within OCEAN Alliance, as well as lines from and to South America.
Average revenue per container transported decreased slightly (-2.1%) in the second quarter of 2018 in comparison with the second quarter of 2017.
The revenue of the Group in the second quarter of 2018 increased by +7.4% as compared to last year, attaining USD 5.70 billion.
EBIT margin under pressure
Over the course of the second quarter of 2018, CMA CGM recorded a Core EBIT of USD 67.1 million, reflecting a core EBIT margin of 1.2%.
The Core EBIT margin notably echoes the very sharp rise in unit bunker costs (+27.7% per ton of bunker over the past year).
The Group intends to pursue the cost reduction initiatives announced upon the release of its first quarter results to improve its operational and financial performance. These notably concern the optimisation of container fleet management and the improvement of energy efficiency.
The consolidated net income Group share amounts to USD 22.7 million in the second quarter. It is supported by improved financial results, positively impacted by the rise of the US dollar versus the Euro.
