Groupe Beneteau is presenting its full-year outlook for 2018-19
Wednesday, February 6, 2019 6:46 PM
The Group’s revenue growth is expected to come in at +3% to +5% based on reported data and +2% to +4% at constant exchange rates.
Confident in the recreational boat market’s medium-term trends, Groupe Beneteau is continuing to prepare for the future, particularly with the launch of a new catamaran brand and the continued development of its digital capabilities.
The rate of income from ordinary operations is expected to be stable on a reported basis, reflecting the impact of the losses recorded by the subsidiary Monte Carlo Yachts and the consequences of the trade tariffs affecting American boat exports.
With the ramping up of the development of new products and the completion of the industrial plan further strengthening production capacity, investments are expected to represent 85 to 87 million euros, compared with 81.3 million euros the previous year.
Excluding the impact of Monte Carlo Yachts, and based on a EUR-USD exchange rate of 1.125, comparable to that used for the 2020 targets, the Group’s income from ordinary operations is expected to represent 7.5% of revenues for FY 2018-19. Groupe Beneteau is therefore still on track to achieve its 2020 targets (current operating margin of 8.5%) for the Group scope, excluding the subsidiary Monte Carlo Yachts.
In an increasingly challenging economic and financial environment, the global recreational boat market, which we operate on, shows a slowdown. It is expected to see +2% growth in value (compared with +3 to +4% in 2018), affected by the inboard motorboat segment’s slowdown (all hull lengths).
For FY 2018-19, the order book at January 31, 2019 is up +4.1% (reported data) compared with the same period the previous year. The sailing segment is continuing to develop, with its order book up +12.3%, while the motorboat segment is down 3.2%, notably due to the market slowdown on the inboard segment. The trade tariffs introduced since July 2018 by the EU and Canada on the motorboats produced in the US are having a negative impact on international sales and leading to increased competition in the United States’ domestic market. Demand for large motorboats over 60 feet is contracting, across all regions. Full-year revenue growth for the Boat Division is therefore expected to reach +4% to +6% on a reported basis, outpacing the markets.
For the 2018-19 season, the Group’s 11 brands will be launching a total of 32 new models, effectively aligned with demand from growing market segments (monohull and multihull sailing, outboard motorboats).