French boatbuilder reports 6% gain in revenues for the first half of its financial year and confirms full-year growth estimate of 4-6%
France’s Beneteau Group reported positive results for the first half of its financial year ending 28 February 2019, noting a sustained level of business across both its Boat and Housing divisions.
The builder said revenues in the Boat Division posted a 5.6% gain for the period to €403.8 million (at constant exchange rates), assesing its growth rate to be twice that of the global market which is edging upwards at an estimated 2-3%. The company confirmed its previous outlook for 2019, with expected full-year revenue gains of 4-6%.
| Boat Division Income (€mil) | H1 2018-19 | H1 2017-18 | Change (reported data) | Change (constant exchange rates) |
|---|---|---|---|---|
| Revenues | 403.8 | 378.0 | 6.7% | 5.6% |
| EBITDA | 22.6 | 17.0 | 32.5% | 16.4% |
| Net income from ordinary operations | -11.0 | -11.9 | 7.6% |
Due to the seasonality of the business with invoicing concentrated in the second half of the year, net income (from ordinary operations) for the period is typically negative according to Beneteau, coming in at -€11m compared with -€11.9m for the same period last year.
The company noted mixed results across regional markets with good sales in North America and Central America, while multihulls continued to drive strong fleet sales to charter firms. Results across Continental Europe generally progressed well, but sharp declines in the UK and Turkey pulled overall sales for the region down slightly in the first half. Beneteau characterised Asian-Pacific sales as contracting with “low activity levels.”
The company said the sailboat side of its business has notched up 6 points to 50% of total revenues in the Boat segment buoyed by the success of fleet sales and the Figaro Beneteau 3 with sales of more than 50 units in the first half of the year
As of 31 March, the company said its order book for boats is up +4.3% based on reported data (+2.9% at constant exchange rates).
Beneteau also highlighted ongoing strategic and R&D investments including for the financial year, including:
- Additional support costs for €4.1m (including indirect production labor, R&D and sales costs);
- €1.6m for the launch of new activities including the Band of Boats digital platform and Beneteau Boat Club with 17 bases in Europe being established
- €2.6m primarily for products, including the development of the Excess multihull range consisting of five models with construction of the first two Excess 12 and 15 prototypes to be unveiled at Cannes; along with launch of the monocat Sun Loft 47 cabin cruiser and development of the company’s new high-tech motor foiler.
In all, 32 new boat models will be launched across the 2018-19 season.
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