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GAM increases 30% its sales in the first nine months of this year


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The Spanish multinational GAM (BME: GALQ), a company specialising in comprehensive solutions for industry, has presented its results for the first nine months of the year, with a favourable evolution both in turnover and margins.

During the first nine months of the year, the turnover increased by 30%, reaching 122.5 million euros, which involves recovering the activity levels before the pandemic and increasing 14%the incomes of that same period in 2019. The EBITDA margin has reached 29.9 million euros (24% over sales) and grows +14% compared to 2020, improving the net result 102%, generating an accumulated profit of 0.1 million.

The short-term business, the one that has mostly suffered the impact of the pandemic, grows now 9% over 2020. The long-term business increases 31% and it already represents 18% of the total incomes of the company, while the non-CAPEX business (those that do not require additional structure and capital, such as distribution, sale, maintenance, training, etc.) have increased 65% and entail 38% of the total incomes.

The EBITDA margin grows 14%, proportionally less than incomes, due to a greater weight of the business with a lower margin (as distribution or sale), but that do not require additional investments. Thus, the EBIT margin increases 51% and the net result, 102%.

After a first quarter of the year highly determined by the pandemic, GAM has obtained 1-million-euro profit in each of the last two quarters, with an accumulated profit of 0.1 million, as opposed to the 2.5 million losses in the same period in 2020. All this, despite some difficulties related to expected delivery delays from the side of the machinery manufacturers in the current context of lack of supplies and international logistic problems.

GAM maintains a high available cash flow position (35.9 million), which allow them to continue benefiting from growth opportunities. In July 2021, the company acquired Recambios, Carretillas y Mantenimiento, S.A. (Recamasa), as well as the Ascendum cargo movement business, in Portugal.