Production continues for now at Italian builder as it releases positive 2019 financials 

Ferretti S.p.A. has announced a 6.5% rise in revenues to €649.3million for the year ending December 31 with the value of production climbing also by 4.4% to € 698.4 million, up from €669 million the previous year.

Ferretti 2019 Financials
(€ mil)20192018Change
Revenues 649.3 609.7 6.5%
Value of production 698.4 669.0 4.4%
Order intake 691.0 573.9 20.4
EBITDA (adjusted)* 62.2 53.5 16.3%
EBITDA Margin 9.6% 8.8% 8bp
Net Profit 26.6 30.7 -13%

*EBITDA Adjusted (*) is defined as the sum of the net profit, income taxes, investment income & expenses, depreciation & amortization and non- recurring items, mainly related to the IPO process in 2019.

A statement from Ferretti claims the increased revenues are down mainly to increased volumes achieved thanks to the continuous renewal of its Ferretti product range in core brands.

From a geographical point of view, Europe and the Middle East remain the Group’s strongest regions. In 2019, the EMEA region accounted for 56% of Revenues (52% in 2018), the AMAS region for 35% (31% in 2018) and the APAC region 9% (17% in 2018).

Ferretti 2019 Revenues by Region
(€ mil)20192019 % total2018 % total
Europe/Middle East 363.6 56% 52%
Americas 227.3 35% 31%
APAC 58.4 9% 17%
Total 649.3 100% 100%

EBITDA Adjusted (*) reached €62.2 million, up 16.3% on 2018, with margins up from 8.8% to 9.6%. ”This increase is mainly due to improvements in production efficiency, thanks to an organizational approach that combines artisan skill with industrial procedures, assuring that scale economies are enjoyed in the different functional areas,” the report read.

Net profits were € 26.6 million, as compared with the € 30.7 million booked in 2018, due, the report states, to the increased weighting of amortization, following the considerable investments made both in developing the product range and extending some production sites.

Net Debt as of 31 December 2019 was € 80.0 million, down compared to €264.9 as of 31 December 2018. The improvement was due to a shareholders’ capital increase of €252.0 million.

Cash and cash equivalents were  39.2 million as of 31 December 2019, in addition to the credit lines available for over €100.0 million deriving from the pooled loan signed in September 2019.

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Ferretti Group CEO, Alberto Galassi

Consolidated Shareholders’ Equity comes to € 499.4 million at 31 December 2019, strengthening against last year’s €178.0 million.

Investments made in 2019 come to €70.0 million: the continuous launch of new models forms the basis for growth and already today 90% of revenues come from the sale of models launched in the last four years. In 2019 alone, 7 new models of the main Group brands were released to the market.

2019 order intake came to € 691.0 million, up 20.4%, as compared with 2018, thanks to the continuous development and launch of new models and the first successes of the Ferretti Security Division.

The financial report included the following statement on the Covid-19 pandemic:

”In complete compliance with the provisions of the law to limit the spread of the Coronavirus Covid-19, the Ferretti Group has kept sites open. In each of these, strict workplace hygiene and safety procedures have been implemented to protect the health of employees and collaborators. The Ferretti Group has also stipulated supplementary insurance contracts linked to the pathology caused by Covid-19, which strengthen cover for all employees.

“Ferretti Group made relevant donations to all hospitals in the territories of each shipyards and launched “A wave of caring” fundraising campaign to help doctors’ restless efforts to fight against this emergency.”

“The excellent results enjoyed in 2019 offer today a much-welcomed injection of energy and faith, confirming the solidity of the Ferretti Group.” Alberto Galassi, Chief Executive Officer of the Ferretti Group, commented. “The recent capitalization and constant support offered by our shareholders allows us to continue to design and produce excellent yachts.We are also giving our contribution towards the hospitals where our shipyards are based, being as much as possible close to the territories where our workers live. We are ready to unleash again our full capacity as soon as this period will be over, protecting the health of our people as well as keep serving our customers around the world. And we hope that thinking about the sea during these times can help everybody to relieve from the concerns of a world that is now suffering, and our Country particularly”.

*EBITDA Adjusted (*) is defined as the sum of the net profit, income taxes, investment income & expenses, depreciation & amortization and non- recurring items, mainly related to the IPO process in 2019.