Mills sets revenue record in 2012
By Euan Youdale05 March 2013
Mills reported strong growth in its 2012 full year financial results, with its rental division showing near 50% rises over 2011, despite challenges in the Brazilian economy.
The company's rental division set an annual record for net revenue in 2012, by taking R$ 253.5 million, 44.5% more than in 2011. Direct equipment rental revenues rose 98.5% compared to 2011, amounting to R$ 65.5 million. While branches opened since 2010 contributed 62% to the rental segment in 2012.
Ramon Vazquez, Mills’ president and CEO, commented: “In 2012 Mills maintained its strong growth trend with rates above 30% in the Heavy Construction, Jahu and Rental segments, despite the weak performance of the Brazilian economy. This shows the potential penetration of our services, and increasing productivity in the civil construction industry."
Sales revenues from used equipment outperformed sales of new equipment in the rental division during the year, added the company. “We understand that, as the average age of our fleet increases, the sale of semi-used equipment will grow and become an important means of financing fleet renewal, in order to maintain a low average fleet age and low maintenance costs,” said a company spokesman.
Earnings before interest, taxes, depreciation, and amortisation amounted to R$ 141.2 million, with growth of 50.8% over 2011. Return on investment capital was 18.2%, compared to 16.5% in the previous year.
Concentrating on the fourth quarter of 2012, net revenue was R$74.2 million, representing another record and 10.2% growth over the 2011 fourth quarter.
There was an increase in maintenance expenses for parts, material and personnel, as a result of the increase in utilisation. There were also cost rises following investment of the commercial and technical teams and preparations for expansion in 2013. The company said its will open five new rental facilities in 2013.
Looking at the results across the Mills Estruturas e Serviços de Engenharia S.A group, net revenue was strong at R$ 879.3 million, 29.8% higher than 2011 – again setting a company record. EBITDA was R$ 358.4 million, 50.5% above 2011.