Ramirent hails ‘step-change’ performance
By Murray Pollok08 February 2018
Ramirent said its results in the final quarter of 2017 and the full year represented a ”step change” in its financial performance. Full year revenues increased by 9.3% to €723.7 million, the fastest growth rate since 2012. Final quarter sales were up 11% to €200.3 million with EBITA profits rising 12% to €25.1 million.
The company said the demand outlook for 2018 was favourable and said it expected profits before interest and tax to increase from the €89.3 million reported for 2017. EBIT profit in 2016 was €38.4 million.
It said a factor in its improved performance was its success in growing its business with small and medium sized companies, which had been a target for the year.
Ramirent’s President and CEO Tapio Kolunsarka said the aim for 2017 had been to achieve a step-change in financial performance in all its operating segments; “With 2017 now behind us, I have every reason to be proud of the accomplishments of the Ramirent team. Our comparable EBITA grew by 45% to EUR 99.0 million and EBITA margin strengthened to 13.7% from previous year’s 10.2%.
“All our segments improved their comparable financial performance and particularly gratifying was the strong profit comeback of Sweden and Europe Central segments. Successful turnaround in our low-performing units has been an important factor in improving our profitability.”
Ramirent’s fastest growing markets in 2017 were the Baltic States and Europe Central (Poland, Slovakia and the Czech Republic), which saw revenue growth, respectively, of 18.6% and 25.8%.
Norway and Denmark both reported flat sales over the year, but double-digit growth year-on-year in the final quarter. Norway’s final quarter performance benefitted from a €5.6 million contract for temporary space.
The company’s two largest markets, Finland and Sweden – which together represent more than 62% of revenues – both performed well, with sales in Finland up 6.1% and EBITDA profits increased by 13.9%. In Sweden sales rose almost 10% and EBITDA profits grew by 15.2%.
Gross capital expenditure on rental fleet in 2017 was €155 million, compared to €166 millioon in 2016.