Loxam hits €1bn annual revenues in France

Photo: Loxam

Loxam has reported a 6% increase in revenues to €642 million for the second quarter of 2023, with strong performance in France and its rest of the world division aiding the growth.

Revenues in France, which remains its largest market, were up by 6.9% to €266 million in the second quarter when compared with 2022, bettered only by the 13.3% increase (up to €198 million) that it posted in the rest of the world.

As a result, the rest of the world, which includes the UK, Spain, Germany, eastern Europe, the Middle East and Brazil, is now the second biggest contributor of revenue for the company, overtaking the Nordic region which posted revenues of €178 million, down by 1%.

The company said the Nordic decline was because of the depreciation of the Swedish and Norwegian Krone versus the Euro, and a slowdown in Sweden and Finland because of a severe decrease in new residential construction.

EDITDA profit was up 10% to €238 million, with France (9% increase) and the rest of the world (13% increase) again leading the way.

Loxam chairman and CEO Gérard Déprez highlighted the impact of organic growth in France; “The continued growth of our business during Q2 was in line with the previous quarters. In France, the organic growth enabled Loxam to reach the €1 billion revenue threshold on a yearly basis for the first time.

“This is a strong achievement with the long-term support and trust of our clients and the commitment of our employees. 

“Rest of the world division kept an impressive double digit growth rate. Apart from new residential construction markets, demand for rental services remained good everywhere, stimulated by renovation and decarbonisation projects.

“The good EBITDA growth for the quarter, which exceeded +10%, was helped by the growth of our revenue and the control of our costs.”

Déprez also revealed that the company has been awarded a second contract for the 2024 Paris Olympic & Paralympic games to cater for overlay (i.e. temporary accommodations and toilets).

Meanwhile, the company also invested in acquisitions in both Brazil and Sweden, purchasing Brazilian temporary power generation specialist A Geradora and Swedish renter Jiab Hyrcenter through its subsidiary Ramirent.

For the remainder of the year, Loxam said it expects rental markets to remain steady, despite a decrease in the new residential construction segment due to rising interest rates.