GAM grows by 26% in 2021 and doubles its profit

Sales reached 168.3 million, with an increase in all business lines, EBITDA closed at 44.2 million exceeding pre-pandemic levels

The company’s profit amounts to 2.7 million (+132% compared to 2020)

GAM (BME: GALQ) has disclosed the results for 2021, overcoming the difficulties caused by the COVID-19 pandemic and consolidating a profitable and double-digit growth in all its businesses.

In 2021, turnover increased by 26% to 168.3 million euros. The EBITDA margin reached 44.2 million euros, which means an increase of 16%, representing 26% of sales, above pre-pandemic levels. On the other hand, the result of GAM increases by 132% and reaches 2.7 million.

 

All lines of business grow at double digits. Thus, sales for recurring services grew by 36% to 32.4 million euros. With average periods of four years, the contracted portfolio increased by 63% and had contracted in 2021 an additional 53 million euros in this kind of services.

Businesses without Capex (those not requiring additional investment, such as Distribution, Training, Maintenance or Sale) grew by 42% to 62.9 million euros. Due to the greater weight of these businesses, which do not require additional investment, EBIT increased by 22%, and the profit doubled.

 

The company has overcome the difficulties caused by the pandemic during the year. To the restrictions on the activity, which had a remarkable impact in the first part of last year, the manufacturers’ delays in the delivery times of the machinery must be added. Such delays derived from the problems in the supply chains.  

However, in the second half of the year, the magnitudes of GAM far exceed those of the first half. In the second, sales reached 90.9 million, with an EBITDA of 26.1 million (29% on sales), far exceeding the figures for the same period of 2019, before the pandemic. Profit for the second half of the year reached 3.5 million euros. 

Delays in delivery by manufacturers – of about five months on average –caused that a significant part of the investments (Capex) took place in the second part of the year. As a result, growth was slower, and there was a misadjustment between the arrival of investments and the generation of results and cash flow associated with them. The company anticipated such delays and the price increases caused by inflationary tensions and doubled its stocks. 

In 2021, GAM continued with its inorganic growth strategy by acquiring Recamasa and the cargo movement business of Ascendum in Portugal. And on January 22, the Dynamo Hispaman Group (GDH) was acquired. With these transactions, the company has strengthened its position in the recurring businesses, Maintenance and Distribution in Iberia and is the primary dealer of the Hyster-Yale brands. 

Additionally to the acquisitions mentioned above that have involved 13.5 million euros, the investments made in the year include other resources allocated to the Sustainability Plan of GAM for an additional amount of 9 million: for the development of sustainable mobility projects through the subsidiary INQUIETO, a provider of solutions for the last logistics mile; for the electrification of the machinery fleet, where 75% of the units for rent are already zero-emission equipment; for the development of a machinery remanufacturing plant, and for other digitalization projects. 

The company maintains a high liquidity position that will allow it to continue leveraging growth opportunities.