The Beneteau Group said it ended fiscal 2015-16 with net sales of 1.083 billion euros — about $1.8 billion — and a strong increase in boat sales.
The company said it saw strong growth in the boat segment in Europe, followed by North America, but continued weakness in South America — especially Brazil — that prompted the company to darken its boatbuilding operations in the country.
In South America, business was down sharply, with revenue dropping 62 percent, to 6.2 million euros ($6.75 million).
“The Brazilian market is particularly affected by the magnitude of the economic and social crisis and affecting the country for several years,” the company said in a statement.
Beneteau said it decided to stop the production of boats at Angra dos Reis because Brazil has been unable “to achieve reliable development forecasts."
The management of the business is being transferred to the group’s U.S. subsidiary, the role of which was expanded in August.
At constant exchange rates, the annual turnover of the entire boat business amounted to 899.4 million euros ($979.22 million) for fiscal 2015-16, up 9.8 percent from the previous year.
The powerboat segment, which rose by 16.3 percent, now represents 58.8 percent of boat sales activity, versus 41.2 percent for sailing.
For the fleets, turnover in the amount of 55.1 million euros (almost $60 million) increased by 12.5 percent.
In Europe, sales totaled 462.7 million euros ($503.7 million), up 18.3 percent at constant exchange rates, compared with the previous year. The group said its brands recorded growth above 10 percent in all Western European countries, including the UK.
In North America, revenue of 283.7 million euros ($308.86 million) was up 6 percent at constant exchange rates, driven by powerboats, which recorded growth of 14.1 percent.
The Prestige brand is a leader in the U.S. express cruiser segment from 50 to 60 feet for the first time, the company said.
In Asia, sales increased slightly, to 56.4 million euros, or about $61.4 million, up 2.6 percent from last year.