Groupe Beneteau reports Q3 results

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Groupe Beneteau revenues for the third quarter at were 420.9 million euros, or about $494.5 million, with 1.7 percent year-on-year growth at constant exchange rates.

For the first nine months of the year, boat division revenues totaled 722.9 million euros ($849.3 million), up 4 percent compared with the first nine months of the previous year and 6.9 percent at constant exchange rates.

The growth is supported by positive sales trends in European markets and a strong volume of fleet orders, according to the company. The North American, Pacific and other world markets are also making positive contributions to growth.

The outboard powerboat segment continues to see robust sales. The 30- to 60-foot inboard segment also is performing well.

Revenues for boats larger than 60 feet were affected by the slowdown in sales of large yachts and the shutdown of the group’s workboat business, CNB Pro.

The sailing segment, which generated 44 percent of sales over the first nine months of the year, is continuing to benefit from progress with catamarans.

Launched in September 2017, a plan to recruit 500 new staffers on permanent contracts in France was completed in May.

As production capacity was ramped up, deliveries have been deferred from the third quarter to the fourth quarter.

Based on the order book and outlook, the boat business is targeting full-year revenue growth of 7 to 8 percent at constant exchange rates for 2017-18, continuing to outpace the market.

The lowered guidance for the year primarily reflects three developments:

  • the slowdown in new orders for the large motoryacht segment (larger than 70 feet), coming in around 20 million euros ($23.5 million) below the full-year target
  • the introduction of tariffs by Canada and the European Union, affecting export sales for boats from the four American brands, with a negative impact of 4 million to 5 million euros ($4.7 million to $5.87 million) for the current financial year
  • the shutdown of CNB Pro, whose low profitability was not in line with the objectives for sustainable growth from the “transform to perform” plan

“This decision is making it possible to reallocate the human and industrial resources to the multihull business, which is seeing strong growth,” the company said. “This is reflected in a contraction in revenues by around 3.7 million euros [$4.35 million] for the current financial year.”