Mills sets revenue record in 2013
By Euan Youdale18 March 2014
The rental division of Brazil-based Mills Estruturas e Serviços de Engenharia S.A. (Mills) set an annual revenue record in 2013, with a 41% increase over 2012.
Rented equipment contributed R$112.1 million of the R$85.3 million year-on-year increase in equipment rental revenues.
Net revenues totalled R$97.2 million in the fourth quarter of 2013, a new quarterly record, representing a 30.9% year-on-year growth and a 3.4% quarter-on-quarter growth.
Rental revenue reached R$86.1 million, with a R$5.6 million quarter-on-quarter increase, of which higher rented equipment volume contributed R$4.8 million. This offset lower revenue from sales, technical assistance and others.
"The market for motorised access equipment continues to grow strongly. The Brazilian fleet for aerial work platforms and telescopic handlers registered growth of 40%, ending 2013 with 29500 machines, against 20847 in the end of 2012, " said a compnay spokesman.
The utilisation rate remained at the normal level. The company opened two new branches in the fourth quarter in Aracajú, in the state of Sergipe, and in Cuiabá, in the state of Mato Grosso. It opened nine over the year and now has 26 in total. Branches opened since 2010 contributed 69% of the rental business unit revenue last year, compared to 62% in 2012.
The company added that it had the largest number of certified International Powered Access Federation (IPAF) instructors and training centres in Latin America. “We account for 73.5% of all IPAF certificates for aerial work platform operation in Brazil.”
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) totalled R$56.0 million in the fourth quarter, with an EBITDA margin of 57.7% and a return on invested capital (ROIC) of 17.5%. In 2013, EBITDA reached R$201.2 million, with 42.5% year-on-year growth. EBITDA margin was 56.3%, compared to 55.7% in 2012, while ROIC was 18.2%, the same as last year.
The spokesman added, "According to our estimates. We believe this market will continue growing at high rates in the coming years, given the current underutilisation of this type of equipment in Brazil.
"Its use was recently stimulated by a ruling for construction sites in 2007 (NR-18) and reinforced by a 2012 ruling specific for working at height (NR-35), making aerial work platforms obligatory for lifting people, thereby increasing safety and productivity in the workplace"
Overall the Mills group record net revenue of R$832.3 million, 25.1% higher than 2012, with record revenue in all business units: Heavy Construction, Real Estate (former Jahu) and Rental.