- Revenue reached 143.3 million euros, with growth along all business lines, and EBITDA grew by 12% to 38.5 million euros.
- Revenue from renting/outsourcing services (long-term recurring business) increased by 20% to €38.3 million, representing 27% of the Group's revenue.
Granda (Asturias), 29 July 2024 – Spanish multinational GAM (BME: GAM), a company specialising in comprehensive solutions for the industry, has presented its results for the first half of 2024, with growth along all its business lines which allows it to maintain a good profitability index.
At the end of the first half of 2024, the company's growth has been accompanied by an improvement in the margin with a double-digit growth trend. Revenue increased by 10% to 143.3 million euros and the EBITDA margin reached 38.5 million euros, growing by 12%, which represents 27% of sales.
For its part, GAM's net profit reached 2.2 million euros, and investment in machinery (CAPEX) was reduced by -40%.
Business Diversification
In the first half of the year, homogeneous growth was maintained across all business lines. Thus, the business diversification strategy included in the business plan continues to be implemented.
In this way, revenue from long-term leasing/outsourcing services has increased by 20% to 38.3 million euros, and now represents 27% of the Group's revenue. For its part, the short-term rental and services business increased by 11% to 55.3 million euros.
Non-Capex businesses (those that do not require additional investment, such as Distribution, Training, Maintenance, or Purchase and Sale) grew by 2% to 49.7 million euros.
This business diversification strategy allows growth while maintaining EBITDA profitability at 27% and improving by one percentage point. On the other hand, EBIT fell by 8% compared to the first half of 2023 due to the increase in depreciation (+22%), of which four percentage points derive from IFRS 16 and two points come from the depreciation of the Reviver plant (a machinery remanufacturing plant operating since the end of 2023, with the aim of giving a second life to the machines, thus promoting the circular economy and sustainability, reducing investment and improving the return on capital employed).
Growth and geographic diversification
In the first half of 2024, GAM has continued its growth path in all geographies, driven by the M&A operations carried out in 2023 and the growth in renting/outsourcing businesses.
Morocco and Saudi Arabia stand out, where the figure has increased by 78% compared to the first quarter of last year, followed by LATAM, where it has increased by 43%. In a more moderate way, Portugal and Spain have grown by 4% and 3% respectively.
In relation to EBITDA results, GAM has reduced its exposure in the Spanish market, leaving room for international markets with higher returns and growing opportunities. In this way, Spain goes from covering 73% to 65% of the market, which is now divided between LATAM (17%), Portugal (12%), and Morocco and Arabia (6%).
Sustainable, diversified and resilient business
GAM has doubled its size in the 2019-2023 period and continues to grow at 10% in the first half of 2024, demonstrating its vocation for growth in its core businesses and concentration in the sector, as well as strengthening new businesses (training – Kirleo, audiovisuals and services, robotics and AGV).
With the entry into the distribution and post-sales businesses and the renting/outsourcing business, a change in the business mix has occurred that has reduced the need for investment, providing balance and recurrence to the generation of income.
Additionally, with the launch of the Reviver project for the remanufacturing of machinery, investment (CAPEX) will be even more adjusted, allowing leverage to be controlled and improving the return on assets.
