02.08.2017

Progress continues at Rami

Finnish international rental group Ramirent has reported further growth in revenues and profits in the second quarter.

Looking at the first half of the year, revenues improved 7.5 percent to €338.7 million. The increases came from Finland- + 6.8 percent, the Baltics +14 percent, Sweden +6.8 percent and Central Europe + 32.4 percent. Norway declined 1.4 percent and Denmark 6.2 percent. In terms of profitability all regions saw improvements apart from Denmark which remained the same as last year. Pre-tax profits for the company as a whole were €27.1 million an increase of over 90 percent. Capital expenditure for the first six months was €94 million, 6.4 percent lower than at this point last year.

Moving on to the second quarter, revenues were 2.8 percent higher at €174.1
million, while pre-tax profits were 45 percent higher at €16.1 million.

Chief executive Tapio Kolunsarka said: “We are satisfied with our performance improvement in the first half of the year. Our second quarter was broadly in line with our expectations. Net sales grew by 2.8 percent or 4.2 percent at comparable rates. This year Easter being in the second quarter, but was in the first quarter last year, moderating the sales growth. EBITA also continued to develop positively, reaching €22 million or 12.6 percent of net sales in the quarter. All segments’ EBITA increased except Denmark’s. Our growth in rental sales was good and turnaround actions in non-performing units progressed. The most positive development in the quarter was seen in Europe Central where strong execution of our improvement plan continued and market conditions improved.”

“We have achieved good progress in the first half of 2017 in our profit improvement programme. Market conditions are expected to remain favourable and we will stay focused on our basic priorities to deliver a good performance also during the second half of the year.”

Vertikal Comment

Ramirent appears to be getting to grips with some of the issues in its operations outside of the Nordic region, with all parts of the business growing positively, or in the case of Denmark at least stable. The company still lags behind others- such as fellow Finn Cramo - in terms of profitability but it is progressing well and may well overtake Cramo in the third quarter.

It will be interesting to see how the Danish business develops given Cramo’s sale of its main rental business to Loxam, which could open up opportunities for Rami. The company still has a great deal of potential for further profit and revenue growth.