Beneteau: 2022 results higher than forecast
Thanks to an excellent fourth quarter, Groupe Beneteau closed out FY 2022 with revenues of €1,508m, up 22.9% based on reported data compared with 2021. This performance reflects the outstanding growth achieved by both the Boat division and the Housing division.
Ordinary operating margin of over 10% from 2022
Full-year income from ordinary operations came to €154.7m for 2022, representing 10.3% of revenues, up 61.5% from 2021 (€95.8m). This +2.5 point improvement in the ordinary operating margin is consistent across both divisions (Boats +2.4 pts to 10.5% and Housing +2.8 pts to 8.9%). This reflects the combined impacts of the increase in activity for the Boat and Housing divisions (+€21m), the continued reduction in depreciation (+€5m) and the operational performance achieved by the teams, which made it possible to limit the impact of the supply chain disruption and inflation (+€13m). This result also factors in the favorable change in exchange rates during the year (+€31m), as well as the launch costs for a new industrial unit set up in Portugal (-€5m) and the treatment as expenses of development costs relating to a new ERP using SaaS software (-€6m).
Consolidated EBITDA climbed to €229.2m, representing 15.2% of revenues (vs. 14.8% in 2021), up 26.2%.
Net income growth of 40.5%, with €211m of net cash
Net income came to €103.1m for FY 2022, up 40.5% compared with 2021. It includes -€12.3m of financial income and expenses (vs. -€2.5m in 2021), linked primarily to currency hedging income and expenses (-€10m), resulting from the change in euro-dollar exchange rates during the year.
For the year, the share of associates represents a -€2.4m expense. The robust development of the charter and boat club markets in 2022 enabled the three companies in which the Group has been a shareholder since 2021 to achieve 27% growth in their full-year revenues, which are now back up to pre-Covid levels, combined with an €11m increase in their net income.
The Group’s shareholders’ equity represented €706m at December 31, 2022, compared with €630m at December 31, 2021.
Free cash flow generated during the year totaled €28m. This includes a normalization of finished product inventory levels (+€83m) and an increase in stock levels covering raw materials (+€27m). Net investments totaled €69m, coming in €9m higher than the level of depreciation for the year. They include the finalization of the plan to restart the Sainte-Hermine site for the Housing business (€6.6m).
Net cash, following €24.5m of dividend payments, totaled €211m at December 31, 2022.
Lastly, the return on capital employed (ROCE1) represented 32% at December 31, 2022 (vs. 24% at December 31, 2021 and 14% at August 31, 2019). This increase reflects the improvement in operational profitability, the rationalization of investment strategies and the effective management of working capital requirements.
B-SUSTAINABLE CSR plan ramping up
Presented on December 5, 2022, the Group’s CSR program B–SUSTAINABLE is built around three pillars: Engaged Crew, Preserved Oceans and Ethical Growth.
One of the core priorities with the Engaged Crew pillar is the workplace accident frequency rate, which shows a very strong improvement for 2022, despite a context of high recruitment levels. The frequency rate for accidents resulting in time off work fell by more than 25% in 2022 compared with 2021. This represents a reduction of more than 50% since a proactive approach was rolled out in all of the Group’s facilities in 2016. In view of the progress made, a new target for a further 15% reduction has been set for the next three years.
Concerning the Preserved Oceans pillar, the Group reduced the intensity of direct CO2 equivalent emissions (Scope 1&2) per thousand hours worked by 14% in 2022 compared with 2021. The Group has now completed two lifecycle analyses of the Boat division’s products. They are helping the Group draw up its innovation plan, which aims to offer alternative propulsion solutions across its entire portfolio by 2030, while gradually incorporating recycled resins into the industrialization of its boats.
Lastly, as part of the stakes involved with the Ethical Growth pillar, the Group would like to engage the entire industry around a sustainable development approach. By linking up with Ecovadis, an international firm specialized in solutions for assessing responsible purchasing and CSR performance, the Group aims to ensure that the majority of its suppliers are certified by 2025.
“The robust development of all the markets that the Group operates on, the quality of its product offering, and the excellent operational execution achieved despite the supply chain disruption that affected the entire industry enabled Groupe Beneteau to set two historic records, with over €1.5bn of revenues and €150m of income from ordinary operations. I would like to thank all of the Group’s teams. They have once again showed extraordinary levels of commitment and dedication to achieve the initial ambition from our Let’s Go Beyond! strategic plan from 2022. The Group is therefore perfectly positioned to achieve its new objective looking ahead to 2025”, confirms Bruno Thivoyon, Chief Executive Officer.
GROWTH AND PROFITABILITY CONFIRMED FOR 2023
Boats: premiumization and increase in profitability confirmed
The 20 new models presented in 2022 are helping drive growth in the order book, while dealership inventory is back up to pre-Covid levels. In this context, the Boat division is expected to record revenue growth of over 10% at constant exchange rates in 2023.
The Sailing business is benefiting from very strong demand for catamarans, linked in particular to the commercial success of the new LAGOON 51 and 55 models, as well as the launch of the EXCESS 14. Alongside this, demand for monohull sailing models is being supported by the launches of the FIRST 44, OCEANIS 60 and JEANNEAU YACHTS 55.
For the Motor business, the launch of the JEANNEAU DB (37 and 43), WELLCRAFT Adventure (355 and 435) and PRESTIGE Multihull (M48 and M8) ranges will enable the Group to move into new segments and continue rolling out its premiumization strategy.
This strategy will enable the Boat division to continue to increase its ordinary operating margin, which is expected to reach over 10.5% in 2023, higher than 2022, which benefited from particularly favorable exchange effects.
Housing: heading set for €300m of revenues
The Housing division is expected to record over 15% growth in France and across the European market, paving the way for it to achieve revenues of nearly €300m in 2023. The ordinary operating margin is expected to be over 9.5%, up +0.6 points versus 2022.
Group in 2023 in line with the heading set for 2025
Groupe Beneteau expects to generate more than €1,660m of revenues in 2023, thanks to over 10% growth compared with 2022. Income from ordinary operations is expected to come in higher than €170m, representing 10.3% of revenues, in line with the new profitability target presented on December 5, 2022.
This forecast could be exceeded if the supply chain disruption continues to ease.
The growth and the increase in profitability for the charter and boat club activities are expected to be reflected in a positive contribution by associates in 2023.
Inclusion in the SBF 120
On March 20, 2023, Groupe Beneteau joined the SBF 120, one of the Paris stock market’s leading indices that groups together the top 120 companies listed on Euronext Paris in terms of liquidity and market capitalization. This decision by Euronext’s Expert Indices Committee on March 9, 2023 follows the quarterly review of the Euronext Paris indices.
Launch of Groupe Beneteau Financial Services in North America
Groupe Beneteau announces strategic partnership with LaVictoire Finance to develop and fund financing offers tailored to the marine market.
Groupe Beneteau, a global market leader in recreational boating, and LaVictoire Finance,
a leader in marine lending solutions in the U .S., have launched a collaboration under the label ‘Groupe Beneteau Financial Services’ (GBFS) to offer dedicated, unique,
and competitive financing offers to private and corporate customers, with specific and creative finance products that will be made available exclusively to Beneteau group’s dealer network.
“This virtual joint venture will enable the Groupe to replicate in North America the business model that has been so successful in Europe over the past 40 years”, states Yann Masselot, Groupe Beneteau’s Brand and Communication Director. He adds: “This collaboration gathers industry veterans who are uniquely qualified to support our growth while offering more flexibility and more creativity than the competition.”
“We are thrilled to become a lending partner of Groupe Beneteau in North America. As the post-COVID craze settles, and business returns to normal, we expect tighter competition and more inventory. As such, our team is prepared to support the entire distribution network with innovative solutions tailored to the needs of this evolving market,” commented Hervé Bonnet, CEO of LaVictoire Finance.
LaVictoire has appointed Maryline O’Shea as General Manager of Groupe Beneteau Financial Services to ensure the success of the initiative and act as the privileged contact between the lender, the dealer network, and the respective brand managers and sales directors of Groupe Beneteau in North America.
Groupe Beneteau’s portfolio of includes the brands BENETEAU, JEANNEAU, PRESTIGE, LAGOON, EXCESS, DELPHIA, FOUR WINNS, WELLCRAFT, SCARAB and GLASTRON.