BENETEAU (EPA:BEN) - BENETEAU : Nine month revenues 2017-18

Transparency directive : regulatory news

10/07/2018 17:40

Press release - July 10, 2018

2017-18 nine-month revenues

- Robust growth for consolidated revenues, up +6.2% (constant exchange rates)
  and +3.8% (reported data)

Outlook

- Current financial year at constant exchange rates: expected growth of +7% to
  +8% for both revenues and income from ordinary operations

For the first nine months of FY 2017-18, consolidated revenues climbed to
EUR885.8 million, up 3.8% year-on-year and 6.2% at constant exchange rates. The
progress made with revenues reflects a positive level of business for both the
Boat and the Housing Divisions.

Revenues for the third quarter came to EUR420.9 million, with 1.7% year-on-year
growth at constant exchange rates.

Revenues: nine months and third quarter

EUR MILLION           2017-18      2016-17                 Change
                                             (reported data)      (constant
                                                                exchange rates)

9-month period
Boats                   722.9        695.2        + 4.0%               + 6.9%
Housing                 162.9        158.0        + 3.1%               + 3.1%
- Leisure homes         162.4        150.0        + 8.2%               + 8.2%
- Residential housing     0.5          8.0       - 93.6%              - 93.6%
Consolidated revenues   885.8        853.2        + 3.8%               + 6.2%

EUR MILLION          2017-18      2016-17                 Change
                                            (reported data)       (constant
                                                                exchange rates)

3rd quarter
Boats                   344.9        343.4        + 0.4%               + 3.1%
Housing                  76.0         79.5        - 4.4%               - 4.4%
- Leisure homes          76.0         78.1        - 2.7%               - 2.7%
- Residential housing     0.0          1.4       - 99.4%              - 99.4%
Consolidated revenues   420.9        422.9        - 0.5%               + 1.7%

Boat Division: good sales trends for European markets and strong growth for
fleets

For the first nine months of the year, Boat Division revenues totaled EUR722.9
million, up +4% compared with the first nine months of the previous year and
+6.9% at constant exchange rates.

The Boat Division's growth is being supported by positive sales trends on
European markets and the strong volume of fleet orders. The North America,
Pacific and Rest of the World markets are also making positive contributions to
growth.

The outboard motorboat segment has continued to see a robust level of sales,
followed by the good performance on the segment for 30 to 60-foot inboards. In
the segment for boats over 60 feet, revenues have been affected by the slowdown
in sales of large yachts and the shutdown of the business to build workboats
(CNB Pro). The sailing segment, which generated 44% of sales over the first
nine months of the year, is continuing to benefit from the good progress with
catamarans.

Launched in September 2017, the plan to recruit 500 new staff on permanent
contracts in France over the year was completed in May. As the new production
capacity has been ramped up, deliveries have been deferred from the third
quarter to the fourth quarter.

Based on its order book and outlook, the Boat business is targeting full-year
revenue growth of +7% to +8% at constant exchange rates for 2017-18,
continuing to outpace the markets.

Housing Division: growing Leisure Homes business

For the first nine months of the year, the Housing Division recorded EUR162.9
million of revenues, up +3.1% compared with the first nine months of the
previous year. Growth is being driven exclusively by the Leisure Homes
business, with revenues up +8.2%. The shutdown of the Residential Housing
business is reflected in a marginal level of revenues.

Sales on the French and Italian markets are robust, while the Spanish market is
down slightly. The slowdown in revenue growth for the Leisure Homes business in
the third quarter is linked to the deliveries deferred to the fourth quarter.

Key development since the end of the third quarter
On July 9, 2018, Groupe Beneteau acquired the Slovenian company Seascape
d.o.o., specialized in designing, building and marketing performance sailing
yachts. This acquisition is in line with the strategy to ramp up the Group's
product range with the Transform to Perform strategic plan. It will further
strengthen the Group's global leadership in the liveaboard monohull sailing
segment by including performance cruisers. The Seascape yard currently offers
four models, from 4.3 to 8m, and generated EUR4.2 million of revenues in 2017.

With their innovative design and advanced ergonomics, these affordable
performance sailing yachts combine great sensations and speed with easy use and
simple transportation. They offer multifunctional and adaptable designs,
covering a range of sailing programs, from regattas to family trips and raid
events. Thanks to this acquisition, the Group is able to offer a dedicated
selection of small sailboats for both novice sailors and enthusiasts, often
younger and first-time owners. Seascape d.o.o. will be included in the Group's
scope from its acquisition date.

Full-year outlook for 2017-18

The Boat Division expects to achieve full-year revenue growth of +7% to +8% at
constant exchange rates.

The revenue growth forecast for the year primarily reflects three developments:

* The slowdown in new orders for the large motor yacht segment (over 70 feet),
  coming in around EUR20 million below the full-year target;
* The recent introduction of trade tariffs by Canada and the European Union,
  affecting export sales for boats from the four American brands, with a
  negative impact of EUR4 to 5 million for the current financial year;
* The shutdown of operations to build workboats (CNB Pro), whose low
  profitability levels are not in line with the objectives for sustainable and
  profitable 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. This is reflected in a
  contraction in revenues by around EUR3.7 million for the current financial
  year.

The Housing Division is forecasting full-year revenue growth of between +5% and
+6%, supported by growth in Leisure Homes (estimated at +10% to +11%),
benefiting from a dynamic market environment  in France and Italy. The shutdown
of the Residential Housing business and the completion of the projects underway
are progressing in line with the conditions planned.

In this market environment, the Group is forecasting global revenue growth of
around +7% to +8% at constant exchange rates. Income from ordinary operations
is expected to be up +7 to +8% at constant exchange rates, including a EUR5.5
million impact for profit-sharing for employees in the Group's main subsidiary,
for the first time since 2009.

The next announcement is scheduled for October 30, 2018, when full-year
earnings for 2017-18 will be released.

FINANCIAL GLOSSARY

At constant exchange rates: average rate for the previous reporting period.

EBITDA: earnings before interest, taxes, depreciation and amortization, i.e.
operating income restated for allocation / reversal of provisions for
liabilities and charges and depreciation charges.

Free cash flow: cash generated by the company during the reporting period
before dividend payments and changes in treasury stock.

Net cash: cash and cash equivalents after deducting financial debt and
borrowings.

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.

FY 2016-2017 Group revenues : EUR 1208.3 MILLION

Motorboat   47,5 %
Sailboat    37,5 %
Housing     15,0 %

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

BENETEAU's latest news

19/03/2024 17:40

BENETEAU (EPA:BEN) - BENETEAU : Nine month revenues 2017-18

Transparency directive : regulatory news

BENETEAU's latest news

Other stories