- Business growth was accompanied by profitability, with EBITDA of 18.3 million (27% of sales, 2 points higher than the previous year)
- Renting/outsourcing (recurring long-term rental business) grew by 28% to 18.9 million and accounted for 28% of total revenues, providing stability and recurrence in revenue generation.
- The company continues to make progress in its sustainability plan, with the start-up of Reviver, the machinery remanufacturing plant that will contribute to substantially reducing the company’s annual CAPEX needs, and with a zero-emission fleet that already exceeds 82%.
Oviedo, 21 May 2024 GAM, a listed Spanish multinational company (BME: GAM), which offers integrated solutions and services for industry, maintained its double-digit growth trend in the first quarter of 2024 (+13%), despite the seasonal nature of Easter in the first quarter of this year, which saw growth shrink by 3 points when compared to the same period of the previous year.
The company’s growth, which has been accompanied by an improvement in the margin, resulted in revenues of EUR 67.4 million (+13%), and EBITDA of EUR 18.3 million (+20%), representing 27% of sales and a 2 p.p. improvement compared to the same period of 2023.
Net profit amounted to EUR 1.1 million, compared to EUR 0.9 million in 2023.
Business Diversification
The fastest growing business activity is renting/outsourcing (long-term recurring business), which increased by +28% and accounts for 28% of the company’s total revenues. This activity serves to stabilise revenue, with a contract portfolio worth more than EUR 240 million, and helps the company to substantially diversify its fields of activity.
Distribution and after-sales as well as rental and services have also experienced an increase in this first period of the year, of 4% and 11%, respectively.
Sustainability PlanThe company operates a rental fleet that is already 82% zero emission, reaffirming its commitment to sustainability and reducing its carbon footprint. Furthermore, the commissioning of Reviver, Europe’s largest machine remanufacturing plant -covering a total surface area of 200,000 m2-, will not only contribute to environmental sustainability by giving a second life to GAM’s fleet machines, but will also allow GAM to optimise its cost structure by reducing annual CAPEX needs. This initiative is part of the company’s strategic sustainability plan, which aims to lead the sector in the transition to a circular economy model.
