GAM (BME: GALQ) has just reported its results for the first half of 2022, with a 39% increase in revenue to €107.4 million, and a net profit of €2.4 million compared to a loss of €0.8 million in the same period last year. The EBITDA margin reached €27.5 million, up 52%, representing 26% of sales. Growth has been in double digits across all its business lines.
Thus, recurring service sales (long-term) increased by 61% to €23.2 million. The contracted portfolio, with average cycles of four years, increased by 71% compared to the same period last year, with an additional €36 million contracted in 2022 for this type of service.
The Rental business (short-term), which had been most affected by the pandemic, has recovered with asset utilization rates similar to 2019, and has grown by 35% to €43.5 million.
Businesses without Capex (those that do not require additional investment, such as Distribution, Training, Maintenance, or Buying and Selling), grew by 32% to €40.8 million. The greater weight of these businesses means that EBIT increased by 138% and net profit nearly quadrupled.
In addition to existing issues from supply chain difficulties, which persist and are expected to continue through the second half of the year, cost increases due to inflationary pressures have emerged. Despite all this, the company achieves high levels of growth and improved profitability; thus, the EBITDA margin improved by 2.2 points to 26%.
During the first six months of 2022, GAM has continued with its inorganic growth strategy and has executed the acquisitions of Grupo Dynamo Hispaman (GDH) and Grupo Intercarretillas. With these operations, the company has strengthened its position in recurring business, Maintenance, and Distribution in Iberia, becoming the main dealer of Hyster®-Yale® brands in the territory.
Additionally, in relation to its sustainable mobility business for last-mile logistics, GAM has incorporated De Lage Landen (DLL), a financial entity belonging to the Rabobank group, specializing in asset financing, as a partner. DLL has taken a 20% stake in this firm. Thus, the project now has a reference financial partner in the sector to boost the development and growth of this business.
Despite the high growth, the company maintains a debt level similar to the end of 2021 and a comfortable liquidity position.
“In a complex environment marked by inflationary pressures, cost increases, and supply chain issues, the company achieves high growth across all its business lines and improved profitability, which makes us approach the second half of the year with optimism. We therefore keep our strategic plan intact, with caution - mainly due to the complex and uncertain context - but with our well-known ambition and commitment, characteristics of all the people at GAM,” said Pedro Luis Fernández, president and CEO of the company.
| Consolidated Income Statement (Millions of euros) | Q1 2022 | Q2 2022 | Total Accumulated 2022 | Total Accumulated 2021 | Change 22/21 |
| Revenue | 49.9 | 57.5 | 107.4 | 77.4 | 39% |
| EBITDA (*) | 12.0 | 15.5 | 27.5 | 18.1 | 52% |
| % of Sales | 24% | 27% | 26% | 23% | 2.2 pp. |
| EBIT | 2.2 | 5.1 | 7.3 | 3.1 | 138% |
| Net Profit | -0.2 | 2.6 | 2.4 | -0.8 | +386% |
| (*) Defined according to Alternative Performance Measures included in Interim Financial Statements | |||||
| Cash Flow (Millions of euros) | Total Accumulated 2022 | Total Accumulated 2021 | Change 22/21 |
| Operating Cash Flow | 17.5 | 12.4 | 41% |
| Investment Cash Flow | -17.9 | -20.1 | -11% |
| Financing Cash Flow | 11.8 | 8.5 | 39% |
| Free Cash Flow | 11.4 | 0.8 | +1,295% |
| Cash Availability (Millions of euros) | Total Accumulated 2022 | Total Accumulated 2021 | Change 22/21 |
| Cash | 25.3 | 21.8 | 16% |
| Available Lines | 14.8 | 32.0 | -54% |
| Total Available Cash | 40.1 | 53.8 | -25% |
| Balance (Millions of euros) | June 2022 | December 2021 | Change 22/21 |
| Total Equity | 90.1 | 84.9 | 6% |
| Financial Debt (Millions of euros) | June 2022 | December 2021 | Change 22/21 |
| Gross Financial Debt | -204.6 | -162.4 | 26% |
| Cash | 25.3 | 13.8 | 83% |
| Net Financial Debt (*) | -179.3 | -148.6 | 21% |
| (*) Defined according to Alternative Performance Measures included in Interim Financial Statements | |||
