by Augustin Turpin and Dina Kartit

(Reuters) – CMA CGM, one of the world’s largest container shipping companies, said on Friday it expects the slowdown in its business seen in the fourth quarter of 2022 to continue for the current year, citing pressures inflationary pressures that weigh on consumers.

The group, based in Marseille and controlled by the Saadé family, anticipates in 2023 an increase in capacity in both sea and air freight and uncertain prospects for demand, due to the reduction in stocks in the United States and pressures on purchasing power.

Market conditions in the transportation and logistics industry continued to deteriorate in the second half of 2022, the group said, citing geopolitical tensions, macroeconomic uncertainty and the sharp drop in freight rates.

“The year 2023 opened in the continuity of the second half of 2022 with a degraded market environment for the Transport and Logistics sector”, added CMA CGM in a press release.

The group reported a 3.6% drop over one year in its turnover in the fourth quarter, to 16.89 billion dollars (15.91 billion euros). Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) were down 30.9% to $5.69 billion.

To face these challenges, CMA CGM specifies that it has reinvested nearly 90% of its 2022 net profits in its industrial assets and capacities, strengthened its balance sheet and improved its financial flexibility.

Full-year 2022 revenue was $74.5 billion, up 33% from 2021, while Ebitda was $33.3 billion, up 44.2% over one year.

(Report Dina Kartit and Augustin Turpin, edited by Jean-Stéphane Brosse)

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