Big gains in Latin America for GAM

Spanish rental business GAM reported big revenue gains in Latin America, North Africa and Saudia Arabia as it reported a 10% increase in revenues to €143.3 million for the first half of 2024.

Its sales in Latin America grew by 43% to €24.1 million, while its much smaller operations in Morocco and Saudi Arabia were up 78% at €4.8 million. Revenues in its most important home market rose by 3% to €103.7 million.

Logo: GAM

Sales outside Spain now account for 35% of its business, divided between Latin America (17%), Portugal (12%) and Morocco and Saudi Arabia (6%).

GAM said these external markets offered it “higher returns and growing opportunities”.

EBITDA profits were up 12% at €38.5 million – representing an EBITDA margin of 27% - and net profit was €2.2 million, down from €4.1 million in the same period in 2023.

During the first half year the company reduced its capital investment by 40% to €28.9 million. The company is aiming to reduce its fleet spending by using its recently established Reviver plant to refurbish machines and give them a second economic life.

The company’s revenues are split into three streams: its long-term rental/outsourcing business (which would include industrial forklift trucks), where revenues increased by 20% to €38.3 million; the traditional “short term” equipment rental activities, which saw sales up 11% to €55.3 million; and “non-CapEx businesses”, such as distribution, training and maintenance, where sales were up 2% to €49.7 million.

GAM said it had doubled in size between 2019 and 2023 and that its entry into distribution, after-sales services and long term leasing/outsourcing had reduced the need for investment and given more balance to the business.