Sanlorenzo: The preliminary consolidated results of December 2020
Tuesday, February 23, 2021 2:23 PM
Ameglia (SP), 23 Febraury 2021 – The Board of Directors of Sanlorenzo S.p.A. (“Sanlorenzo” or the “Company”), which met on today’s date under the chairmanship of Mr. Massimo Perotti, examined the preliminary consolidated results as of 31 December 2020.
Massimo Perotti, the Company’s Executive Chairman, noted:
«2020 results, exceeding outlook in an extremely complex context, prove once again the efficacy and the resilience of Sanlorenzo’s business model and the strength of the brand; not only the steadiness of revenues, but also and especially the relevant increase in operating margins.
Worth highlighting the substantial stability of the order portfolio, standing at €408.8 million, given the travel restrictions and the cancellation of all boat shows in the world, except Genova and Fort Lauderdale. The solidity of backlog is represented by the sale to final clients accounting for more than 94%.
A further reassuring element for the future is the strong acceleration in the order intake recorded in the last quarter. This, together with the positive market trend and the commercial success of the four new models launched during the year as planned, makes us look forward to 2021 with confidence».
Analysis of consolidated net revenues new yachts
Net Revenues New Yachts for the financial year ended 31 December 2020 amounted to €457.7 million, up by 0.4% compared to €455.9 million as of 31 December 2019, confirming the outolook for the year. A remarkable result in the current situation, also generated from steady selling prices, thanks to the high-end positioning of the brand, and from a shift in product mix towards larger yachts in the Yacht and Bluegame divisions.
In the fourth quarter, Net Revenues New Yachts amounted to €135.1 million, up by 10.4% compared to €122.4 million during the same period of 2019.
The Yacht Division generated Net Revenues New Yachts of €292.8 million, equal to 64.0% of the total, up by 1.0% compared to 2019, driven by sales of larger yachts.
Net Revenues New Yachts for the Superyacht Division amounted to €135.8 million, equal to 29.7% of total, down by 9.5% compared to 2019, due to the restrictive measures on travel, which have slowed down the validation of production milestones by suveryors and owner’s representatives, professional figures typically involved in the superyacht construction process.
The Bluegame Division recorded Net Revenues New Yachts of €29.1 million, equal to 6.4% of total, up by 82.3% compared to 2019, thanks to the excellent sales results of the new BGX line, with the addition of the second model BGX60, launched in 2020.
Europe recorded Net Revenues New Yachts of €234.1 million (of which €64.0 million generated in Italy), accounting for 51.1% of the total, down by 16.4% compared to 2019, due to the persistence of the restrictive measures.
The APAC area recorded Net Revenues New Yachts of €103.7 million, accounting for 22.6% of the total, an increase of 42.0% compared to 2019, thanks to a solid recovery of sales from the second quarter, fostered by the commercial strength of the long-standing brand representative of the Group in the region, the most important yacht distributor in Asia.
The Americas recorded Net Revenues New Yachts of €82.8 million, accounting for 18.1% of the total and up by 15.4% compared to 2019, boosted by a positive market dynamic during the fourth quarter, promptly seized thanks to the direct presence of the subsidiary Sanlorenzo of the Americas LLC.
The Middle East and Africa area recorded Net Revenues New Yachts of €37.1 million, accounting for 8.1% of the total, up by 17.5% compared to 2019.
Adjusted EBITDA in the financial year 2020 reached €70.6 million, up by 6.5% compared to €66.0 million in 2019. The margin on Net Revenues New Yachts increased from 14.5% in 2019 to 15.4% in 2020, exceeding the outlook.
EBITDA , including non-recurring components linked to the non-monetary costs of the 2020 Stock Option Plan and the expenses incurred for COVID-19 for a total of €1.4 million, amounted to €69.2 million, up by 15.5% compared to €60.0 million in 2019.
The significant growth in gross operating margin is a result of the efficiencies generated by the full implementation of the new production capacity following the relevant investments of the previous years and the consequent higher absorption of fixed costs.
Key factors for this achievement have been the prompt restart of industrial activities following the halt in March-April and the efficient reorganisation of production in compliance with the safety and prevention protocol, that implied extra working in August.
Investments made during the financial year amounted to €30.8 million compared to €51.4 million in 2019, with an incidence on Net Revenues New Yachts down from 11.3% in 2019 to 6.7% in 2020.
In particular, investments for additional production capacity decreased from €29.6 million in 2019 to €11.2 million in 2020, with the completion of the expansion of the Ameglia site in the first months of the year and the acquisition of the Massa shipyard in December.
The strategy to expand the product ranges, introducing highly sustainable innovations and technologies, has been fully confirmed, with investments of €15.7 million, up by 3.3% compared to 2019. The significant amount dedicated to new product development enabled the launch of four new models during 2020.
Net financial position
The Group recorded a net cash position of €3.8 million as of 31 December 2020, compared to a net debt position of €5.1 million as of 30 September 2020 and €9.1 million as of 31 December 2019, following the IPO.
Cash and cash equivalents as of 31 December 2020 were €94.4 million. At the same date, total available liquidity was €227.3 million, including undrawn credit lines of €132.9 million .
Backlog as of 31 December 2020, conventionally cleared from Net Revenues New Yachts recorded during the year, amounted to €408.8 million, compared to €444.3 million as of 31 December 2019.
This result has been fostered by a strong acceleration in the order intake in the fourth quarter of the year, which recorded new orders for €196.3 million, thanks to a solid market recovery and to the success of the new models launched in 2020, as well as to the targeted marketing and commercial initiatives undertaken by the Group.
€305.1 million of the backlog relate to 2021, providing good visibility on Net Revenues New Yachts expected for the current year.