Mills revenue boosted by investment

Brazil-based rental company Mills has reported a 25% increase in revenues for the 2023 financial year, reaching record net revenues of R$1.4 billion (€266 million).

Net rental revenues were up by 21.8% compared to 2022, reaching R$1.1 billion (€218 million) for the year, while sales from used equipment reached R$81.9 million (€15.5 million), representing a 26% increase on the 2022 financial year. 

The company said the rise in revenues was partly down to its strategy to invest in its heavy rental fleet, with Mills quadrupling its fleet size in the segment in 2023.

In total, the company invested R$598.5 million (€113 million), 92.5% of which was used on investment of new rental equipment. 

The expansion of its fleet follows the acquisition of Triengel Locações e Serviços (Triengel) in 2022, at which time the company said it would “accelerate the move into the yellow line equipment market.”

Meanwhile, revenues from its formwork and shoring business were up by 53%, reaching net revenues of R$230 million (€43.7 million) and rental revenues of R$192 million (€36 million) at a 41% increase. 

Looking ahead, Mills said it will continue its “strategy in the light and heavy segments, making investments alongside the execution of new agreements and assessing strategic opportunities for upfront equipment acquisitions, as well as M&As to accelerate growth.”

Sergio Kariya, CEO, Mills, said the company is well positioned for the 2024, backed by strategic positioning and competitive advantages; “We proved the thesis of investing in the heavy rental market, bringing greater diversification, cash flow predictability and a new avenue of growth for the company.”

Kariya added that the company is expecting more growth in the coming year; “Our engines are running hot for 2024 and we believe that this year will be another year of profitable growth, reinforcing our strategic positioning and competitive advantages. 

“Our business units are structured to support Mills’ progress and maximize value for all our stakeholders, bringing significant returns and solid foundations for the expansion of our business.

“2023 really was an excellent year and we present our results proud of what has already been achieved, but I know that our team will not rest to make 2024 even better, because I see in every employee the desire to excel.”