The Rodriguez Group has reported a 76 per cent drop in third quarter sales during its 2008/09 financial year. Revenue totalled just €21.1m compared with €87.5m in the corresponding third quarter of the previous fiscal year. The picture over the nine months ended June 30, 2009 was little better, with sales amounting to €70.3m compared with €264m in the first three quarters of the 2007/08 fiscal year — a 73.4 per cent drop.

In the third quarter, yacht sales accounted for just €12.9m compared to €75.4m, a drop of 82.7 per cent. Over the three quarters, yacht sales amounted to €50.3m in 2008/09 compared to €230.5m in 2007/08. The company reports that the third quarter performance reflects the "continuing marked slowdown in global sales for the luxury goods segment from which the Rodriguez group is not immune. Many clients, financially and psychologically affected by the crisis, preferred to postpone the purchase of new yachts."

In the meantime, the group is moving ahead with its financial restructuring plans so that they are well placed when the recovery comes. Rodriguez says it is taking advantage of the second observation period, which will end on April 7, 2010, "to finalise the restructuring measures undertaken since the safeguard procedure was initiated in April 2009 and consolidate the foundations of its recovery."

The implementation of the company's general cost-saving plan is now at an "advanced stage" with a reduction in indirect expenses and structure costs of more than 50 per cent from the 2010/11 fiscal year. The group's cash generation target "remains a priority with marketing efforts being focused on yachts in stock, both new and pre-owned. Yachts trade-ins have become the exception and new units are only manufactured if pre-sold."

Discussions with banks about finalising "significant debt restructuring and a repayment plan" are ongoing. The Cannes Commercial Court will assess the group's safeguard plan at the end of March 2010. Rodriguez is expected to report a full-year loss once again.

Superyacht Business, 10 February 2010