GAM achieves 223 million euro turnover and triples its net profit

• The company demonstrates its profitability with 58 million euro EBITDA (+33%), despite the impact of inflation on costs. EBIT also grew by 46% to 17 million euro (8% of sales).
• In 2022, net profit tripled to 8 million euro.
• The recurring or long-term business was that which recorded the most positive rise in the past year, although rent continues to have the main weight in the business.
• In terms of sustainability, 80% of GAM’s fleet is zero emissions and 95% of the company’s energy consumption comes from green energy sources.

 

Oviedo, 1 March 2023. GAM, the listed Spanish multinational company (BME: GAM) that offers comprehensive solutions and services for industry has presented its business results for 2022. In this period, the multinational achieved 223 million euro turnover, which represents 33% growth compared to 2021, in which it obtained 168 million euro in revenue. 

During the year, GAM has once again shown notable control over general expenses and a trend of improved profitability, with 58 million euro EBITDA (+32%), despite the impact of inflation on costs. EBIT also grew by 46% to 17 million euro (8% of sales). 

This represents a significant improvement in results, with net profit tripling to 8 million euro.

Homogeneous growth in all businesses and markets 

All business lines present positive growth data. The recurring or long-term business is the area that recorded the most positive increase: by 50%, and now represents 48.7 million euro revenue in 2022, with a weight in the total business of 22%. 

By growth volume in 2022, with +33%, it is followed by the business area without CAPEX (those that do not require structure and additional capital, such as distribution, procurement and sale, maintenance, training, etc.), with 83.8 million euro in revenue and a weight of 37% in the total business. 

Finally, the short-term rental business line recorded the lowest growth, 24%, although it continues to be the primary revenue source, which was 90.8 million euro in 2022 and 41% of the company’s overall weight.

 

In addition to a homogeneous growth in the areas, this is also the trend in all the markets in which the company operates. Morocco was the market with the greatest increase in business in 2022 compared to the previous year, with a 74% and 4.4 million euro increase in revenue. 

By growth level, it is followed by Portugal, with 33% and 17.6 million euro. Business penetration in the Spanish market grew by 32% this year, with 169.6 million euro revenue, the highest of all the markets in which the company operates. Latam grew by 30%, with 31.7 million euro in revenue. Thus, in these four markets, GAM accumulated 223.2 million euro. This consolidation outside of Spain’s border demonstrates the success of GAM’s diversification model internationally. 

 

Organic growth and improved debt structure 

The company’s growth is mainly organic, with a 23% increase; while the acquisitions made in Spain contributed 10% inorganic growth in the year 2022. Organic EBITDA also represents the main margin, with 20%, and acquisitions the remaining 12%.

In 2022, GAM also reduced the debt ratio to 3.4 times the EBITDA generated by the company, compared to 3.7 in 2021.

 

Greater commitment to sustainability 

GAM’s sustainability model is materialised through a transformation project called Embracing Sustainability, which encompasses all of the company’s sustainability initiatives. This project is divided into four main blocks to guarantee that the objectives and positive impacts are applied throughout the business model. 

These four focal points of GAM’s Sustainability Plan range from the environmental side to the circular economy, business transformation and the social area. Thus, 80% of its fleet is zero emissions and 95% of its energy consumption is from green energy sources. 

Along these lines, GAM also has a last-mile sustainable mobility company, Inquieto. In addition to a machinery re-manufacturing plant based on the circular-economy principle. Also, in the social area, it supports training in the sector through its Kirleo Trade School.