Solid growth for Cramo
11 February 2019
Cramo’s sales rose by 10.6% in the fourth quarter of 2018, compared to the equivalent quarter in 2017, amounting to €217.5 million.
This growth was helped by the company’s acquisition of Nordic Modular Group Holding (NMG) in October 2018, which increased sales by €12.8 million. The acquisition was said to strengthen the Finish rental company’s Modular Space division both in terms of market position and business model expansion.
In the fourth quarter, comparable EBITA (earnings before interest, taxes and amortization) came to €34.4 million, or 15.8% of sales, which was up from the equivalent quarter in the previous year, when it came to €32.4 million. Meanwhile, EBITA was €30.2 million, or 13.9% or sales - down from the €32.7 million recorded in the fourth quarter of 2017.
The company reported cash flow from operating activities to be €71.6 million, up 2.7% compared to the previous year. Cash flow after investments was minus €119.7 million, excluding acquisitions that came to a value of €20.6 million. This represented a drop from the €19.4 million recorded in the fourth quarter of 2017.
On 23 November 2018, Hartwig Finger was appointed Executive Vice President, Central Europe, and as a member of the Cramo Group management team. Since mid-June 2018, he had been acting as an interim Executive Vice President for Cramo Central Europe.
As a whole, 2018 was a good year for Cramo. Gustafsson said, “Cramo’s 2018 was a year of solid sales growth, acquisitions in both of our divisions and a successful performance improvement in Modular Space business. All group-level financial targets were achieved in the financial year 2018. In addition, growth targets regarding the Equipment Rental division’s sales as well as Modular Space division’s rental sales were achieved.”
Sales for the full year came to €779.8 million, up 6.9% on the previous year, with organic sales growth of 6.1%. This was said to have been helped by a positive market environment.
Comparable EBITA was recorded at €130.1 million, or 16.7% of sales - up 8.3% on the previous year, when it came to €120 million. EBITA was €124 million, or 15.9% of sales - also up on the previous year, when €120.7 million was recorded.
Cash flow from operating activities equated to €195.5 million in 2018, up from the €186.5 million recorded in 2017, and cash flow after investments was minus €150.4 million, excluding acquisitions and disposals €9.7 million, representing a drop from €33.1 million in 2017.
Gustafsson was positive about the year ahead, saying, “The 2019 equipment rental market outlook remains still positive despite increased economic uncertainties.”