Covid-19 epidemic: limited impact on Group's business to date
Thursday, March 12, 2020 5:31 PM
Groupe Beneteau is monitoring developments with the Covid-19 epidemic each day. In a global environment that is difficult to predict and evolving each day, this situation’s impact on the Group’s activities is limited.
In accordance with the health authorities’ recommendations, and as a measure to protect its employees, all events in and travel to affected areas have been cancelled or postponed. To optimize infection prevention and support for its teams, Groupe Beneteau has deployed various precautionary and information arrangements at all its French and international production sites. It is also encouraging employees to organize meetings remotely in order to avoid having to travel.
To date, the epidemic’s impact on the Group’s commercial activity has been marginal.
For the Leisure Homes business, the majority of orders were recorded during the first half of this financial year. The next major commercial event will be held in France in June and is still scheduled to go ahead.
For the Boat business, the main boat shows in the northern hemisphere (Europe and North America) – areas where the Group generates 80% of its Boat revenues – were all held during the first half of this financial year. The organizers of several regional boat shows in Asia and the Middle East have chosen to cancel or postpone their events. The Asian market represents less than 4% of the Boat division’s revenues (3.9% in FY 2018-19), with 75% in China. The markets in China and more generally across Asia have been contracting for several years, as indicated in previous announcements. This drop in orders therefore predates the appearance of the Covid-19 epidemic. The contraction in sales for these markets was included in the outlook reported for the current financial year on February 4, 2020.
Out of the 26 production sites operated by Groupe Beneteau around the world, two are located in Italy’s Friuli Venezia Giulia and Emilia-Romagna regions. To date, these two Italian plants are operating normally.
With regard to supplies from countries affected by the Covid-19 epidemic (China and Italy), the Group has not experienced any shortages and is even seeing production start up again at the Chinese facilities concerned. The current delays in the supply chain will be resolved by arranging air transport.
Groupe Beneteau’s production has therefore been only very marginally affected by the Covid-19 epidemic to date.
A general update on Groupe Beneteau’s short and medium-term outlook will be presented when the strategic plan is published on April 29.