Malibu Boats Inc. increased net sales 39.4 percent in the first quarter to $172.1 million, and unit volume increased 13.9 percent to 1,727 boats.
The increase in net sales and unit volumes were driven primarily by the company’s acquisition of Pursuit in October 2018. The company also attributed the growth to increased demand for Malibu and Axis brands and year-over-year price increases across the Malibu, Axis and Cobalt brands.
Net sales attributable to the Malibu segment increased $10.7 million, or 14.2 percent, to $85.9 million, and unit volumes for the segment increased 81 units. The increase in net sales and unit volume for Malibu was driven primarily by strong demand for new models and optional features, which led to a higher net sales per unit for Malibu and Axis models. Net sales were also impacted by year-over-year price increases on all Malibu and Axis models.
Net sales from the Cobalt segment increased $1.9 million, or 3.9 percent, to $50.2 million for the quarter compared to the first quarter of 2018. Unit volumes attributable to Cobalt decreased 13 units. The increase in Cobalt net sales was driven by year-over-year price increases on all Cobalt models.
Net sales and unit volume contributed by Pursuit were $36 million and 143 units.
Overall consolidated net sales per unit increased 22.3 percent to $99,641 per unit.
“Strength in retail registrations were further amplified by the strong reception of our model year 2020 products by dealers and customers alike,” said Malibu Boats CEO Jack Springer in a statement, adding that the announcement of the new flagship Malibu M240 is expected to further that momentum into winter boat show season.
Cobalt and Pursuit continue to perform well, and the company’s operational enhancement initiatives remain on track, said Springer.
“In the first quarter, our operational agility was also highlighted as we rapidly improved channel inventory levels, while at the same time successfully navigating potential supply disruptions as a result of the prolonged UAW strike,” said Springer. “As we look forward, our strong start to fiscal year 2020 supports our continued optimism for our brands, and ability to drive meaningful value creation for our shareholders.”
Gross profit for the quarter increased $39.1 million, or 42 percent, to $132.1 million.