- The company achieved revenues of 219.7 million, an 8% increase compared to the same period in 2023, with very consistent growth: GAM is growing across all businesses and all markets.
- This growth is achieved with a 35% reduction in investment, resulting from the company's efforts to improve return on capital employed and thanks to the Reviver circular economy project.
Oviedo, November 20, 2024.- GAM , a Spanish multinational company listed on the stock exchange (BME: GAM), providing comprehensive solutions and services for the industry, has presented its results for the third quarter of 2024, confirming its path of sustained growth and consolidation in the sector. During this period, the company recorded a significant increase in revenues, an improvement in operational profitability, a substantial reduction in investment, and notable progress in its sustainability and diversification strategy.
The company's revenues for this quarter amounted to 219.7 million euros, representing an 8% increase compared to the same period last year. This growth was driven, among other factors, by the outstanding performance of the rental and outsourcing business, which experienced a 17% year-on- year increase and now accounts for 27% of GAM's total revenues.
Operational profitability has also shown a positive trend, with an EBITDA¹ of 59.1 million euros, representing a 12% increase compared to the third quarter of 2023 and accounting for 27% of sales (compared to 26% at the end of the same period last year). GAM remains focused on improving profitability and reducing investment, reflecting efficient management aligned with its resource optimization strategy, which will help mitigate the impact of rising interest rates. Financial costs are nearing their peak in 2024, with a slight improvement expected in 2025.
1. GAM's EBITDA, excluding the effects of the Sustainability Plan (negative during this initial phase), would improve by 0.6 percentage points, while EBIT would increase by 1.4 percentage points and the net result by 1.6 percentage points.
Growth across all businesses and markets
In a sustained manner, GAM has strengthened its diversified business model, also during the third quarter of 2024, thanks to the strong performance of key segments. The rental and outsourcing business (long-term recurring business) experienced a remarkable 17% year-on- year growth, consolidating itself as one of the main revenue drivers and now representing 27% of the total. The rental and services segment grew by 9%, while the distribution and after- sales area saw a 1% increase.
From a geographical perspective, GAM has strengthened its position in all the markets where it operates, driven by the positive impact of M&A operations carried out in 2023 and the dynamism of the rental and outsourcing businesses in these regions. LATAM and the Morocco-Arabia region lead the growth, with increases of 27% and 31%, respectively. In Portugal, revenues grew by 7%, while Spain recorded a 4% increase. This performance highlights GAM's ability to adapt to regional bdynamics and seize opportunities in key sectors, further solidifying its global presence.
With over 40,000 machines in operation and a contracted portfolio exceeding 240 million euros, GAM demonstrates its operational strength and ability to adapt to a complex market environment. The high contract renewal rate, above 90%, underscores the trust of its clients in its value proposition and long-term vision. With eight acquisitions completed over the past four years, the company continues to explore new opportunities to expand its presence and consolidate its leadership in the sector.
Ambitious sustainability project in development
The company is also making progress in its commitment to sustainable last-mile logistics through Inquieto and the Reviver circular economy project, Europe's largest remanufacturing plant, which gives a second life to machinery that has reached the end of its cycle. This ambitious sustainability project, currently in its startup and development phase, is set to transform the company and the sector in the coming years.
The Reviver project is a key pillar in GAM's strategy. This initiative, aimed at extending the lifespan of machines, will reduce CAPEX consumption, maximize cash generation, and improve return on capital employed.
