Carnival plc(CUK) - 2024 Q4 - Annual Report

Company Overview - Carnival Corporation & plc operates as the largest global cruise company with a combined passenger capacity of 269,970 as of November 30, 2024, representing 100% of its total capacity[41]. - The North America and Australia segment accounts for 64% of Carnival's total passenger capacity, with Carnival Cruise Line being the largest brand at 33%[41]. - In 2024, Carnival Corporation & plc carried a total of 13,509 thousand passengers, an increase from 12,460 thousand in 2023, with significant contributions from the United States and Canada (7,938 thousand) and Continental Europe (2,702 thousand)[56]. Strategic Initiatives - The company plans to sunset the P&O Cruises (Australia) brand and integrate its operations into Carnival Cruise Line by March 2025[25]. - Carnival Corporation & plc aims to strengthen its balance sheet and deliver long-term shareholder value by driving revenue and generating record levels of cash from operations[34]. - The company has six cruise ships under contract for construction, with expected deliveries ranging from 2025 to 2033, including new builds for Carnival Cruise Line and Princess Cruises[43]. Sustainability Commitment - Carnival Corporation & plc is committed to sustainability, investing in technology upgrades and fleet improvements to reduce its environmental footprint[33]. - The company is committed to ethical sourcing and sustainability, with a Responsible and Sustainable Sourcing Policy to monitor compliance with its standards[76]. - The company has established sustainability goals for 2030, aligning with the United Nations Sustainable Development Goals, and has achieved several goals ahead of schedule[162]. Environmental Compliance - Carnival Corporation's ships are subject to various international maritime regulations, including SOLAS and MARPOL, which govern safety, environmental, and operational standards[108]. - The company adheres to ISO 14001 standards for environmental management, ensuring compliance with international environmental laws and regulations[122]. - Advanced Air Quality Systems are implemented on most ships, helping to mitigate financial impacts from ECAs and global sulfur requirements[131]. Financial Performance - The company’s passenger ticket revenues are seasonal, with the highest demand typically occurring in the third quarter, which includes the Northern Hemisphere summer months[62]. - In 2024, 34% of cruise revenues were generated from onboard and other revenue goods and services, including beverage packages, internet packages, and shore excursions[63]. - The company has increased marketing and advertising programs in 2024 to drive demand across its cruise lines, focusing on digital performance marketing and lead generation[69]. Operational Challenges - Climate change regulations and increasing global concern may materially impact the company's business operations and financial results, necessitating capital investments in new technologies and emission allowances[187]. - Supply chain disruptions may limit the availability of critical products and services, increasing operational costs[199]. - Fluctuations in fuel prices and availability could adversely affect operational costs and profitability, with potential increases in guest vacation costs[197]. Cybersecurity Measures - The company has not experienced any material cybersecurity incidents in the last three fiscal years, and expenses related to cybersecurity incidents were not material[213]. - The Chief Information Security Officer (CISO) oversees cybersecurity risk reduction and regulatory compliance, bringing over 20 years of experience[214]. - The company engages third-party advisory firms for cybersecurity assessments and requires service providers to comply with security and privacy requirements[212]. Future Developments - Celebration Key, a new exclusive cruise port destination, is under construction and expected to open in summer 2025, accommodating up to four cruise ships at once[67]. - The company plans to enhance Half Moon Cay, with a new pier expected to open in summer 2026, allowing two ships to dock simultaneously[66]. - The company is investing in a first-of-its-kind lithium-ion battery storage system and assessing carbon capture and storage technologies[164].