BENETEAU (EPA:BEN) - BENETEAU / 2017-2018 trends & Transform to Perform plan
Transparency directive : regulatory news
07/02/2018 17:40
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Press release - February 7, 2018
2017-2018 trends
> Consolidated revenue growth of 6% to 8% (reported data) and of 8% to 10%
(constant exchange rates)
> Strong progress with Group income from ordinary operations, ahead of
schedule with the Group's development plan
Operating margin rate stable after factoring in the exchange effect
> Continued investments to capture market growth
Transform to Perform plan
> Good operational progress with the plan, making it possible to:
- Respond to the strong market upturn
- Achieve operational performance gains against a backdrop of product plan
accelerated renewal
During its financial information meeting, held on February 7, 2018 in Paris
(France), Groupe Beneteau presented its full-year forecasts for 2017-18, as
well as the progress made with its Transform to Perform strategic plan,
enabling it to continue with its sustainable and profitable growth.
Boat Division
The global recreational boat market (scope covered by the Group) shows positive
trends, with estimated growth of +3% in revenues and around +2% in volumes.
For FY 2017-18, the orders recorded at December 31, 2017 are up +23.4% from the
order book for the same period last year. This progress reflects +25.1% growth
for the sailboat segment and +21.9% for the motorboat segment. Full-year
revenue growth for the Boat Division is expected to reach +5.5% to +7.5% ,
outpacing the markets.
For the 2017-18 season, the Group's 10 brands are launching a total of 38 new
models (vs 29 new models last season), effectively aligned with demand from
growing market segments (incl. multihull sailing, outboard, large units).
The Group is continuing to ramp up the development of new products to capture
market growth. The current financial year will see the completion of the main
capacity investments for multihull and outboard production.
Housing Division
The French leisure homes market, on which the Housing Division generates 85% of
its revenues, is dynamic, with estimated growth of +12% for revenues and around
+10% for volumes.
For FY 2017-18, the orders in units recorded at December 31, 2017 came in
+11.3% higher than the order book for the same period last year. This progress
has been driven by +12.1% growth in units for the French market and +6.8% in
units for the European export market (with a dynamic market in Italy, where the
Division has a production site).
The Housing Division is forecasting full-year revenue growth of between +6% and
+8%. Revenue growth is supported by the Leisure Homes activity's growth
(+11% to +13%) against a backdrop of buoyant environment and market
share gains in France. The shutdown of the Residential Housing business and the
completion of the projects underway are expected to be finalized under good
conditions before the end of the year.
Transform to Perform and the challenge of growth
The Transform to Perform plan is enabling the Group to respond to the strong
upturn in the market, in addition to outpacing market growth in its two
business lines - Boats and Leisure Homes - and further strengthening
operational performance, while managing the growing complexity of the product
plan.
To plan ahead for the generational transition and ensure the successful
transfer of skills, the Group has been rolling out a plan to recruit 500
permanent staff since September 1, 2017, with one third of these positions to
replace staff scheduled to retire within the next two years. More than 270
recruitments have been completed and the Group is confident that it will be
able to fill these positions.
Consolidated trends for FY 2017-18
With the development of new products ramping up to capture market growth and
the completion of the industrial plan further strengthening production
capacity, the Group's investments are up +20% from the previous year's figure
of EUR78.8m.
Revenue growth is expected to come in at +6% to +8% (reported data), with +8%
to +10% at constant exchange rates.
The Group's income from ordinary operations is expected to make strong
progress, coming in ahead of schedule with the Transform to Perform 2020
strategic plan. The rate of income from ordinary operations is expected to be
stable on a reported basis. Its growth is being penalized by an unfavorable
exchange rate effect for around EUR10M. A series of measures have been adopted
to minimize this effect. The return to employee profit-sharing for the Group's
main subsidiary, after clearing the losses carried forward, is integrated into
income from ordinary operations for FY 2017-18 for around EUR5.5M, one year in
advance. This element had already been planned for in and does not affect the
target announced, with 8% to 8.5% for income from ordinary operations in
2020.
The presentation from the financial information meeting is available on the
Groupe Beneteau website.
FINANCIAL GLOSSARY
At constant exchange rates: average rate for the previous reporting period.
FY 2016-2017 Group revenues : EUR 1208.3 M
Motorboat 47.5%
Sailboat 37.5%
Housing 15.0%
ABOUT GROUPE BENETEAU
As the boating industry's global market leader, Groupe Beneteau, through its
Boat division's 10 brands, offers over 200 recreational boat models serving its
customers' diverse navigational needs and uses, from sailing to motorboating,
monohulls and catamarans.
Leading the European leisure homes market, the three brands from the Group's
Housing division offer a comprehensive range of leisure homes, lodges and pods
that combine eco-design with high standards of quality, comfort and
practicality.
With its international industrial capabilities and global sales network, the
Group employs 7,000 people, primarily in France, the US, Poland, Italy and
China.
CONTACTS - GROUPE BENETEAU
INVESTORS AND PRESS CONTACT
Mirna Cieniewicz
m.cieniewicz@beneteau-group.com
Tel +33 / (0)2 51 26 88 50
SHAREHOLDER CONTACT
Yannick Coicaud-Thomas
y.coicaud.thomas@beneteau-group.com
Address: 16 bd de la Mer - CS 43319
85803 Saint Gilles-Croix-de-Vie Cedex - France
www.beneteau-group.com