15.08.2023

Solid first half for Mills

Brazilian rental company Mills has reported its first half and second quarter results, both of which show strong revenue growth and higher profits.
The company is split into two main divisions - Rental and Formwork - and we focus mainly on the Rental division, which gains most of its revenue from sales and rental of aerial work platforms and telehandlers, although it has also started to add ‘Heavy Equipment’ which appears to be high capacity wheel loaders and other earth moving equipment.

First half

The business achieved total revenues of R541.5 million ($110.4 million) up 29.6 percent on the same period last year, with 89 percent of the revenue coming from rentals, the balance being sales and services. The division achieved operating profit improved 15.2 percent to R162.4 million ($33.1 million).
At the end of June, the company had 11,548 units in its fleet, almost two percent higher than this time last year. Capital expenditure for the first six months totalled R389 million ($79.3 million) compared to only R50.5 million ($10.3 million) in the same period last year.

Second quarter
Total revenue for the quarter was R280.5 million ($57.2 million) up 30.2 percent on the same quarter last year, thanks to higher rental rates and a slightly larger fleet. Operating profit increased 20.5 percent to R85.4 million ($17.4 million).

Group results
Total revenues for the group for the first six months were 34.2 percent higher at R759.2 million ($154.7 million) with a pre-tax profit of R183.2 million ($37.3 million) up 41 percent on last year.

Chief executive Sergio Kariya said: “In the Light Rental unit, the mobile elevating work platform market continues to show strong growth potential. Through this unit and Mills' representativeness in this market, we have the mission to penetrate the platform concept, bringing more productivity and safety to work at height and an operation with a national presence, through our 56 branches.”

“In 2022 we opened 15 branches that are now in the ramp-up phase, and we expect to open more than four branches in 2023. We are seeing stronger demand in the second half of the year compared to the first, because of the improved macro scenario and seasonality. Since June, we have already seen improvements in productivity, after receiving the last large batch of equipment from orders placed between 2021 and 2022, a period in which the supply chain was stressed.”

Vertikal Comment

Mills is clearly continuing to make progress as it claws its way back from economic challenges and decline that began in 2014 after several years of overly rapid expansion in the aerial lift and telehandler rental market. It has been on the rebound since 2019, helped by the takeover of Solaris. Now firmly back on firm ground it appears to be following a more measured expansion this time round.

A very positive result in what is becoming a more competitive market.