Latin America boosts GAM results

Double-digit revenues growth in GAM Alquiler’s Latin American business helped the company grow its revenues by 3% to €156.1 million in the first half of the year.

The company’s Latin American activities - Chile, Mexico, Colombia, Peru, and the Dominican Republic – saw 11% year-on-year growth to €22.6 million.

GAM’s major business in Spain and Portugal saw a 1% rise to €127.8 million. Sales in Saudi Arabia and Morocco were flat at €5.7 million.

EBITDA profit rose by 3% to €43.9 million for the six months, representing a 28% EBITDA margin.

The Spain-based company said its Reviver remanufacturing plant – which aims to give its equipment fleet a second life – was now having a positive impact.

It expects to achieve its aim of limiting capital expenditure on fleet to 55-60% of EBITDA by the end of this year. Fleet CapEx in the half year was €35.7 million.

GAM’s business is split into three components: recurring business (long term), which includes long-term rentals of industrial forklifts and its last-mile fleet of delivery vehicles (Inquieto); distribution and after sales, comprising sales of new equipment, including forklift trucks; and Rental & Services, which is the more conventional equipment rental business.

Each of these segments saw between 2% and 3% growth in the first half of the year and the three are split evenly in terms of revenue contribution, with rental services the largest at 37% of the total.