04.05.2016

Sharp profit rise at Cramo

Finnish international rental group Cramo has reported a solid first quarter with a sharp rise in profits.

Total revenues increased 5.7 percent to €155.4 million driven by improvements in Sweden, Finland, and Denmark. Norway dropped significantly, while Central and Eastern Europe posted small declines. Pre-tax profits jumped 81 percent to €8.9 million. Capital expenditure on the fleet was around 10 percent lower than in the same period last year at €30.6 million.

Chief executive Leif Gustafsson said: “During the first months of the year, the demand for equipment rental and modular space developed according to our expectations. We have managed to capitalise on the improved market situation in our main markets Finland and Sweden. In the first quarter, our sales grew by 6.4 percent in local currencies. As for segments, sales grew in Finland, Sweden and Denmark. Sales grew strongly in the modular space product area where rental sales increased by nine percent”.

“On the basis of the current outlook, I expect the demand for rental services to stay on a good level throughout the year. Over the long term, the increase in the use of rental services and modular space is supported by several megatrends, such as urbanisation and sustainability. Our first-quarter EBITA margin increased from 6.9 percent to 8.3 percent, with profitability improving in Finland, Denmark and Central Europe and staying on par in Sweden. In Central Europe, the EBITA margin was still negative, but I expect the margin to gradually improve during the year. My first months as Cramo’s president have been inspiring, and I have been very pleased to witness the high level of skills, commitment and motivation among our employees to develop our operations and further strengthen our market position. We have started the preparation of Vision 2020. We will provide more details on our new strategy in the autumn.”

Vertikal Comment

A decent set of numbers from Cramo which seems to be outpacing its fellow Finnish rental group Ramirent in terms of revenue growth and profitability. However it is good to see both companies growing again and moving forward.