- Business growth is accompanied by profitability, with an EBITDA of 73.7 million euros (+26%), and EBIT of 23.2 million euros (+8%).
- Renting/outsourcing (long-term rental recurring business) takes a significant position in the company's total revenue, providing stability and recurrence in income generation.
- Reviver, the machinery remanufacturing plant, will substantially reduce the company's annual CAPEX needs.
Oviedo, February 29, 2024.- GAM, a listed Spanish multinational company that offers comprehensive solutions and services for the industry, has achieved record results at the end of fiscal year 2023, reaffirming GAM's growth vocation and its consolidation in the market as a reference operator.
In this period, the multinational experienced a 26% growth in sales and EBITDA profitability compared to 2022, reaching a turnover of 280.9 million euros -last year GAM had a revenue of 223.2 million euros-. It also maintained solid financial management, reflected in a leverage ratio (net financial debt/EBITDA) of 3.4x, demonstrating its commitment to stability and sustainable growth. Despite an environment still marked by inflation and rising interest rates, EBITDA reached 73.7 million euros; while EBIT remained at 8% on sales, reaching 23.2 million euros.
The net profit, reaches 9 million euros, compared to the 7.9 million earned in 2022.
Well-balanced diversification of the three businesses
All business lines grew by double digits in 2023. The renting/outsourcing business takes a significant position in the company's total income (now accounting for 25% of the total business), registering an increase of 42%, which translates into revenues of 68.9 million euros.
The distribution and aftersales businesses, meanwhile, account for 37% of the total business, growing 25%, which represents total revenues of 105.1 million euros. Lastly, the short-term rental and services business line grew 18%, up to 106.9 million euros, and represents 38% of total revenues.
International growth
In 2023, the multinational continued its double-digit growth in all businesses and in all markets where it operates. Analyzing the growth in the markets where it is present (Portugal, Latam, Morocco, and Arabia), the figures show that the weight in the Iberian market has been reduced, in favor of other geographies, where higher growths are being registered, and in which GAM has growing opportunities and better returns.
This year the company acquires two important companies in the machinery sector, with the aim of increasing its business and consolidating in two markets: Mexico and Spain.
OZMAQ, a family-owned Mexican company based in San Luis Potosí, the country's logistics center, which provides services on a recurring basis to clients in the automotive and manufacturing industries, among others. It is a distributor of Clark, a renowned international manufacturer, and has a workforce of more than 100 employees, more than 50% of whom are technicians with extensive knowledge of the sector and proven experience.
The other company that GAM has incorporated into its group is Carretillas Mayor, a Spanish company with extensive experience, specialized in the rental and maintenance of all types of handling, lifting, and AGVs equipment. The company employs more than 200 professionals, most of them specialized technicians, and has a machinery park of more than 3,000 units.
Reviver as a turning point in the industry
One of the most notable events for GAM in 2023 was the launch of Reviver, which, with a total area of 200,000 m2, is the largest machinery remanufacturing plant in Europe. Reviver will substantially reduce the company's annual CAPEX needs, giving a second life to GAM's fleet machines.
Strategic investments in acquisitions have allowed GAM to strengthen its market position, incorporating companies with technical and commercial know-how, an important client portfolio, and the opportunity to capture synergies and improve returns and efficiency. Additionally, investments in machinery contribute to GAM having a portfolio of contracts (renting/outsourcing business) that will bring in more than 240 million euros in revenue in the coming years.
About GAM
GAM is a listed Spanish multinational company founded in 2003 in Asturias, which offers comprehensive solutions for the industry based on rental, maintenance, and distribution of machinery, as well as services associated with its activity sector.
Currently, it operates in 9 countries (Spain, Portugal, Morocco, Saudi Arabia, Colombia, Mexico, Chile, Peru, and the Dominican Republic). It has 80 branches, 11 business lines, and more than 40,000 machines, with a managed fleet worth 650 million euros.
In addition to new and used machinery, GAM offers related ancillary services, such as specialized training for the sector, through Kirleo. It also offers sustainable mobility services, through Inquieto, with comprehensive solutions for last-mile delivery. The company also has an Audiovisual line, which offers a solution with a single supplier for technical design, rental of audiovisual equipment, assembly of structures, or energy solutions.
Reviver is the largest machinery remanufacturing plant in Europe -located on a surface of 200,000 m2-, with which GAM will reintroduce about 3,000 machines a year, both nationally and in Europe, through the reconditioning of machinery and recycling of subproducts useful in other industries. Additionally, these facilities will contribute to job creation and repopulation of Spain's depopulated areas.
GAM serves more than 70,000 clients worldwide and employs more than 1,800 people, through a solid distribution network formed by 350 mobile workshops.
