French shipping giant, CMA CGM Group, has reported a 50 per cent decline in its second quarter profit.
The company’s net income decreased to $661 million in second quarter 2024 from $1.33 billion in the same period of 2023.
The Chairman of CMA CGM group’s Rodolphe Saadé, made the disclosure in a statement in Lagos on Monday.
Saadé said that the group’s revenue rose 6.8 per cent year-on-year to $13.1 billion in the second quarter.
He added that the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell 4.3 per cent to $2.48 billion, with a margin of 18.9 per cent, down 2.2 points.
Saadé said that despite operational challenges, the group delivered a solid performance in second quarter a strong shipping business and growing logistics sector.
He said that CMA CGM had made key investments in decarbonisation and digital transformation.
Saadé noted that spot freight rates continued to rise in second quarter, amid sustained demand and shipping capacity constraints.
According to him, this is due to disruptions in the Red Sea and rerouting via the Cape of Good Hope.
He added that CMA CGM handled six million TEUs in second quarter, a 6.8 per cent increase from the prior-year period, driven by strong global trade and cargo demand, particularly on Transpacific and Asia-Europe routes.
