240925 BENETEAU Results H1-2024

Operating margin now expected to reach 4% to 6% for 2024

Premiumization and adaptation measures continuing to move forward

§  Group operating margin over 10% for H1 2024^[1] 

§  First-half ordinary operating margin close to 9% for the Boat division, despite a 32% contraction in sales linked primarily to the expected decrease in dealer stock levels 

§  Solid financial structure, with positive net cash of €137m after dividend payments, profitsharing and company performance bonuses 

§  Outlook confirmed for 2024 revenues, with around €1bn expected for the Boat division, and revised for operating margin between 4% and 6% (vs. 3% to 6% previously)

§  Ramping up the development of the Group’s three strategic pillars: value-driven growth, sustainable innovation and new navigation solutions

“Groupe Beneteau’s results for the first half of 2024 once again illustrate the relevance of the value-driven growth strategy rolled out over the last few years. They also highlight the outstanding adaptability of its 8,000 staff, who are once again showing their agility as they move forward faced with the major changes on the markets, particularly for the smaller units in the United States. 

The second half of 2024 will be marked, as expected, by the continued reduction in dealer stock levels and a return to seasonality for shipments. 

As always, the Group will generate new sources of growth by launching innovative models. The very good response to the new models presented at the first autumn shows is encouraging and starting to translate into orders”,  confirms Bruno Thivoyon, Groupe Beneteau Chief Executive Officer.

EBITDA - 42.0%  

           % of revenues                               14.5%           18.6%           - 4.1 pts             14.0%              19.4%           - 5.5 pts  

                                                                                                                                                       49.5                131.2            - 62.3%

                                                                                                                                                      8.9%               16.1%           - 7.2 pts  

                                                                                                                                                      -51.2                58.9                     

Boat division profitability close to 9% thanks to the adaptation measures rolled out 

The Boat division recorded first-half revenues of €557m (€813m in H1 2023). As expected, this 32% drop is linked primarily to the changes in inventory within the distribution networks. After building their stock back up again post-Covid for nearly €150m in H1 2023, the increase in financing rates, in line with expectations, led dealers to reduce their inventory by around €80m over the first half of this year. Excluding this phenomenon, sales to end customers show a contraction of around 4% for the period. As detailed in the publication on July 24, this change is due to the lower volumes seen on certain market segments such as small power units in the United States and Monohull Sailing. This trend was largely offset by a targeted premiumization strategy covering the other segments, such as multihulls. 

The Boat division’s income from ordinary operations totaled €49.5m for the first half of 2024 (€131.2m in H1 2023). This contraction is linked to the changes in dealer stock levels (-€75m), the slowdown in market volumes (-€20m), and foreign exchange effects (-€5m), although mitigated by the premiumization strategy (+€15m) and competitiveness gains (+€16m). In addition, the adaptation measures launched by the Group to maintain its operational efficiency, while preserving its ability to bounce back (multi-year working time arrangements and furlough measures) represent a residual cost of €11m for the first half of this year. The Boat division’s ordinary operating margin came to 8.9% for the first half of 2024, with over 11% excluding the American brands, affected in particular by the very sharp slowdown in demand for small power units in the United States. 

Housing division’s good performance in a market that is normalizing

Following three years of very strong growth, Housing division revenues stabilized at nearly €210m for the first half of 2024 (€215m in 2023). The slowdown in demand on the French market was offset by the sales growth achieved for exports (+24%). The division once again achieved an outstanding performance over the first half of the year, with €30.5m of income from ordinary operations and an operating margin of 14.5%. 

The Housing activity’s proposed sale to Trigano is still subject to approval by the French competition authorities, with their response expected during the second half of 2024. In accordance with IFRS 5, this business is presented in the Group’s consolidated accounts under “Operations held for sale”.

Solid financial structure with €137m of net cash (before IFRS 5)

Net income (Group share) came to €49.4m for the first half of the year (€117.1m in H1 2023), with this decrease in line with the lower level of activity for the Boat division. The negative figure of -€0.8m for financial income and expenses reflects an improvement in placement conditions (+€2m vs. 2023), while no longer benefiting from positive impacts linked to the change in exchange rates on currency hedging (-€2.4m in 2024 vs. +€1.8m in H1 2023). 

For the first half of 2024, the share of associates represents a -€4.2m expense (-€0.9m in H1 2023). This deterioration primarily reflects the non-recurring impact for the depreciation of the securities of the weekly charter company Navigare (-€2.5m) with its full takeover by the holding company Bluesea, jointly owned with the investment group PPF, which controls it. Moreover, the impact of the reduced level of boat sales for the other charter company Dream Yacht Charter was offset through growth in the financing activities of the subsidiary SGB. 

The Group had €136.6m of net cash at June 30, 2024 (with €21m relating to the Housing division). The changes over the first half of the year are linked mainly to the dividends paid out (€59m), as well as the payment of profit-sharing and company performance bonuses, end-of-year rebates and tax, with a €76m change in working capital requirements relating to elements resulting from the outstanding performance from 2023. Other working capital requirements items increased by €12m, primarily due to the reduction in trade payables in line with the lower level of activity, while the level of inventory remained stable over the period and came in €23m below end-June 2023. Lastly, the Boat division’s net investments came to €43m for the first half of the year (€32m in H1 2023). They include the acquisition of a minority interest in the startup Candela (€4m) and the finalization of work to increase the flexibility of the French sites (€8m). The Housing division generated €7m of cash during the first half of 2024 (-€3m in H1 2023). 

The Group had €845m of shareholders’ equity at June 30, 2024 (€795m at June 30, 2023). 

Outlook confirmed for 2024 despite the market uncertainty and strategic plan continuing to move forward

At the start of this boat season, as the market is still marked by a wait-and-see approach, dealers are continuing to roll out their stock reduction plans, with €100m to €150m still expected for the full year in 2024. In addition, interest rates remain high, which is expected to continue affecting end customer demand for small power units and monohull sailing models, as well as the ability of charter firms to renew their fleets. 

For its part, the high-end market continues to be dynamic and the new models presented at the first autumn shows have received very positive feedback, confirming the relevance of the premiumization strategy rolled out across the various segments.  The Group is therefore continuing to move forward with its strategic roadmap, focused on three priorities for the 2024-2025 season: 

Adapting its cost structure, while continuing to adjust its industrial capacity and scaling back its indirect costs. Full-year savings of €25m are expected, while €10m were achieved in H1 2024.  

Accelerating its value-driven growth strategy with the launch of 14 new models over the season. The new PRESTIGE M-Line power multihull range will be further strengthened with the M7, positioned between the current PRESTIGE M48 and M8. Alongside this, five new sailing catamarans will be launched over one year by the LAGOON and EXCESS brands, offering a range from under 40 feet to over 80 feet. Lastly, sales on the Dayboating segment will be boosted by the introduction of a new offer from the WELLCRAFT brand, whose first model, the 38 T-Top, received a very good response when it was presented at Cannes, as well as the continued development of the FOUR WINNS brand’s outboard catamaran range.

Innovating to reduce the Group’s CO₂ emission intensity by 30% by 2030, while continuing to improve its user experience.

The new BENETEAU Swift Trawler 54, fitted with electric stabilizing fins, and the twin-hull foil-assisted FOUR WINNS models both combine a 20% to 40% reduction in their CO₂ emission intensity with a very significant improvement in conditions for stability on the water. For its part, the Island Cruising concept boat shows how combining hybrid propulsion fitted as standard with an innovative hull architecture can reduce in-use CO₂ emission intensity by nearly 50%, while significantly increasing its on-board comfort levels and living space. 

Lastly, at Cannes, the Group unveiled its first Refit project, with the Lagoon 620 NEO, renovating catamarans over 60 feet at its Monfalcone industrial site. This offer will enable their owners to benefit from the whole range of new technologies available, as well as a new manufacturer’s warranty.

In this market environment, shipments are expected to return to their pre-Covid seasonality levels. The Group is therefore able to confirm its latest full-year revenue forecast for 2024, with around €1bn for the Boat division, and is now targeting an ordinary operating margin of 4% to 6% (3% to 6% previously), with 6% to 8% excluding the American brands, which are expected to see an operating loss of nearly €15m for the year. The Boat division is also forecasting a reduction in internal inventory levels by €20m to €50m for the year.

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Groupe Beneteau will report its revenues for the third quarter of 2024 on Wednesday November 6 after close of trading.

A presentation of the half-year earnings is available on the Groupe Beneteau website. The half-year activity report will be available by September 30, 2024.

FINANCIAL GLOSSARY

At constant exchange rates: change calculated based on figures for the period from January 1, 2024 to June 30, 2024 converted at the exchange rate for the same period in 2023 (January 1, 2023 – June 30, 2023).

Sell-out: sales to end customers, estimated based on revenues adjusted for changes in inventory within the distribution networks reported by the dealers.

EBITDA: earnings before interest, taxes, depreciation and amortization, and IFRS 2 and IAS 19 adjustments following IFRS GAAP, i.e. income from ordinary operations restated for allocation / reversal of provisions for liabilities and charges, depreciation charges and IFRS GAAP (IFRS 2 and IAS 19).

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

ABOUT GROUPE BENETEAU

A global market leader, Groupe Beneteau, thanks to its Boat Division’s nine brands, offers nearly 135 recreational boat models serving its customers’ diverse navigational needs and uses, from sailing to motorboating, monohulls and catamarans. 

Through its Boating Solutions division, the Group is also present in the boat club, charter, marina, digital and financing sectors. 

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 around 8,000 people, primarily in France, Poland, Italy, Portugal, Tunisia and the United States.

APPENDICES

EBITDA RECONCILIATION

* Before the application of IFRS 5

CONSOLIDATED FINANCIAL STATEMENTS (AFTER IFRS 5)  P&L 

Change in inventories of finished products and work-

in-progress                                                                                                         16,330             44,753

BALANCE SHEET 

CASH POSITION