Mills’ 3Q revenue rises 20.6% after acquisition

Photo: Mills

Mills, the largest rental company in Brazil, saw its net revenue reach a historic record of R$419.5 million (€69 million) in the third quarter of this year, up 20.6% from the same period of last year, thanks to the growth in its heavy business and incremental revenue from JM Empilhadeiras, a forklift truck rental company.

The company’s adjusted EBITDA grew 11.5% to R$199 million while net income surged 6.1% to R$70.8 million for the same period.

“Since the acquisition of JM Empilhadeiras in June this year, our pipeline has increased tenfold, showcasing the effectiveness of our portfolio expansion strategy,” Mills’ chief executive officer Sergio Kariya said in a press release. “We were able to secure significant, long-term agreements, reinforcing our leadership position in the market and our commitment to quality.”

On May 9 this year, Mills agreed to acquire JM Empilhadeiras for about R$280 million. JM Empilhadeiras reported a gross revenue of R$153.5 million last year.

Kariya said the arrival in Brazil of machines imported from China at more competitive prices than those charged by traditional manufacturers has led to slight pressure on prices and increased competition in the light business his year.

He said Mills has been working to strengthen its market footprint and consolidate its partnerships with manufacturers to retain its leadership.

The company’s gross fleet investment rose 11% to R$160.7 million (€26.3 million) in the third quarter of 2024 from a year earlier.

During the third quarter, the company’s net rental revenue was mainly contributed by the mobile elevating work platform (MEWP) (57.1%), yellow line and other heavy equipment (15.9%), formwork and shoring (14.4%), forklifts and forklifts with pallet trucks (11%) and other businesses (1.6%).