Beneteau seeks continued expansion in U.S.

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The Beneteau Group is continuing its push into North American markets and is planning to continue penetrating the North American powerboat market by deploying a wider product range.

Beneteau presented its objectives for fiscal 2015 in its earnings report, saying the company will benefit from the global development that it stepped up after the 2008 financial crisis.

The boat business increased profits significantly last year, the company said.

“Thanks to the growth in business and the positive change in the euro-dollar exchange rate, the boat division looks set to record 37 million euros in income from ordinary operations for fiscal year 2014 to 2015,” the company said in its annual earnings report filed on the Paris Bourse.

That amount, which represents about $41.78 million, is up from 11.9 million euros the year before, or about $13.44 million at Friday’s exchange rate of $1.13 per euro.

After the acquisition of Rec Boat in June 2014, the current financial year will be a year of consolidation for the American company.

“The action plans drawn up will make it possible to establish commercial and industrial synergies between the two groups, with the first returns expected for 2016,” Beneteau said in its report.

In fiscal years 2014 to 2015, Rec Boat will generate revenue of about $125 million, with about $3.5 million in earnings before interest, taxes, depreciation, and amortization, Beneteau said.

The group, which is made up of sailboats (41.5 percent), powerboats (38.9 percent) and housing (19.6 percent), is forecasting 979 million euros ($1.105 million) in consolidated revenue for fiscal year 2014 to 2015. That number is up 21 percent from the prior year.

The group reported nearly 37 million euros in income from ordinary operations, or about $41.79 million. That compares with 11.7 million euros the previous the year, or about $13.22 million in 2013.

Earnings before interest, taxes, depreciation, and amortization for the year is expected to exceed 100 million euros, compared with 67 million euros for 2013 to 2014, Beneteau said. That amounts to about $112.89 million, versus $75.66 million in the prior year.

After factoring in primarily the foreign exchange effect and tax, net income is expected to more than double, coming in at more than 20 million euros, or about $22.58 million, compared with 9.7 million euros, or about $10.95 million, the previous year.

With nearly 90 million euros ($101.63 million) in operating cash flow and a reduction in operational working capital requirements, overall net debt is expected to be reduced by about 40 million euros ($45.20 million) in the year ahead, Beneteau said. On this basis, it is expected to represent about 10 million euros ($11.29 million), compared with 504.4 million euros (569.44 million) in shareholders’ equity as of Aug. 31, 2014.


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