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CMA CGM S. A. - Company Strategy & Performance Analysis

CMA CGM S. A. - Company Strategy & Performance Analysis

Summary

CMA CGM S.A. (CMA CGM) is a France-based privately held container shipping company, primarily engaged in providing the containerized transportation of goods. The group operates its business through two reporting segments, including container shipping and other. CMA CGM primarily operates in Asia, Europe, the Americas, and Australia. It is headquartered in Marseille, France.
The group's key services and activities include shipping services, transportation costs and handling services, container shipping services, XXL cargo shipping services, reefer carrier services, multimodal services, intermodal transport services, air freight and supply chain management services, river shipping services, logistic services and container fleet management services.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, Total revenue.

Key Highlights

Acquisition of NOL fueled growth in terms of container ship revenue
The container shipping segment offers services such as transportation costs and handling services, XXL cargo shipping services, reefer carrier services, logistics services, container fleet management services, river shipping services, inland solutions - intermodal services and transports, roll-on/toll-off service and SOLAS - verified gross mass management. The revenue of the container shipping segment increased to US$15,373.1 million in 2016 from US$15,241.7 million in 2015, indicating an increase of 0.9%, owing to the acquisition of NOL in 2016. NOL’s contribution to the company’s revenue was US$2,624.9 million, out of which US$2,479.8 million was contributed to this segment. The segment accounted for 93.6% of the company’s total revenue in 2016.

Business growth in terms of new shipping lines helps to drive others segment revenue
CMA CGM’s others segment revenue increased from US$804.5 million in 2015 to US$1,046.0 million in 2016, indicating an increase of 30.0%. The segment accounted for 6.4% of the company’s overall revenue. Revenue is recognized when the services have been rendered or when the goods have been delivered. The increase is attributed to the growing business relating to new routes, such as the trans-pacific routes. The company’s other activities include after delivery services, e-commerce, and services related tracking.

The company has witnessed a steady increase in revenues and profit margins
The company recorded a gradual increase in revenues, from US$3,400 million in the first quarter of 2016 to US$4,570 million in the last quarter of 2016. Revenue also increased from US$4,620 million in the first quarter of 2017 to US$5,550 million in the second quarter of 2017. The growth in quarterly revenue and net profit margin is attributed to the integration of APL (NOL acquisition), the launch of the OCEAN Alliance and industry dynamism. The net profit/loss of the company increased from US$100 million in first quarter of 2016 to US$45 million in fourth quarter of 2016. Similarly, net profit augmented from US$86 million in the first quarter 2017 to US$219 million the second quarter of 2017.

Scope

  • Company Snapshot - Details key indicators and rankings of CMA CGM SA in terms of revenue, air freight volume, ocean containers and total warehouse space.
  • Company SWOT Analysis - Outlines CMA CGM's strengths, weaknesses, and opportunities and threats facing the company.
  • Growth Strategies - Provides an overview of CMA CGM’s corporate goals and strategic initiatives and evaluates their outcomes.
  • Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
  • Key Developments - Showcases CMA CGM's recent corporate events and initiatives.
  • ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does CMA CGM ranks among its peers in terms of revenue and market share?
  • What are CMA CGM 's main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014?
  • How has CMA CGM performed in comparison to its main competitors?
  • What are CMA CGM ’s strengths and weaknesses and what are the opportunities and threats it faces?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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