Softer markets for Renta Group

Renta Group has posted third quarter sales up 11.5% to €116.7 million, driven mainly by acquisitions, with the company reporting soft market conditions.

Photo: Renta Group

Around 85% of the company’s revenues are generated in Finland, Sweden and Norway. Renta said “challenging” conditions in Finland led to a 2.3% decline in sales. Sales were down 0.9% in Sweden, adversely impacted by currency fluctuations, although sales were up by more than 10% on a constant-currency basis. In Norway, sales rose by 32.7%, supported by acquisitions.

EBITDA profits rose by 7.1% to €44.3 million.

Revenues in Denmark almost doubled, thanks to the acquisitions of Lohke and Del-Pin, while in Poland and the three Baltic States, revenues sales were down 2.9%, the result mainly of difficult trading conditions for its pump rental activities.

Renta said sales rose by 19.1% on a constant-currency basis, and organic sales by 0.9%, also constant currency. “Maintaining organic growth on a constant currency basis demonstrates that we are still outperforming the (increasingly softer) wider market”, said the company.

Renta said that while there was a softening of the construction markets, it remained confident; “The outlook for rental markets is comparatively better than that of construction markets, while high levels of industrial and infrastructure investment afford us additional protection against a softer construction outlook, noting that the forecast decline is almost entirely related to new residential construction.”