Please select your home edition
Edition
Raymarine 2021 October LEADERBOARD

Groupé Beneteau 2019-20 earnings and FY 2021 growth forecast

by Groupé Beneteau 18 Mar 16:45 GMT
2019-20 earnings and FY 2021 growth forecast © Groupé Beneteau

Following a year marked by the consequences of the Covid-19 pandemic in 2020, Groupe Beneteau is moving forward in 2021 with a robust financial position and is seeing the first benefits of the Let's Go Beyond! plan's rollout.

For this new financial year, it is forecasting a stable level of business, combined with income from ordinary operations growth of over 60% compared with 2020.

Business stable and strong earnings growth for FY 2021 (January 1-December 31)

Boat Division

This period was marked by stronger interest in recreational boat use, with strong demand for dayboating in particular and therefore sales of small motorboats (under 40 feet). The segment for boats over 40 feet (Real Estate on the Water) is also expected to be very buoyant. The Group is forecasting 10% growth at constant exchange rates for motorboat sales.

On the mono and multihull sailing market, with the strength of the leading brands - Beneteau, Jeanneau and Lagoon - and the emergence over the past two years of Excess, the Group's second catamaran brand, sales to retail customers are expected to grow 2%.

The Group is forecasting around 5% growth for its Boat Division, excluding fleets.

However, sales of sailing units to charter professionals, a very dynamic component of the Group's revenues for the past decade, are being affected by the air transport and travel restrictions. While this promising activity is expected to start up again from 2022, the Group has adopted a cautious position in view of its current difficulties, forecasting a contraction of around 50% in its charter sales in 2021, following a 15% drop for the 16 months of FY 2019-2020.

Overall, the Boat Division's revenues are expected to be virtually stable in 2021 compared with the 2020 calendar year.

In line with the strategic plan, and to prepare for the Group's 2022 season, the development teams are focusing their activities on three key areas:

  • On the four strategic markets (Dayboating, Real Estate on the Water, Monohull Sailing and Multihull Sailing), developing a complementary and innovative offering for the four leading brands (Beneteau, Jeanneau, Prestige and Lagoon) and overhauling the lineup of the four challenger brands (Four Winns, Wellcraft, Delphia and Excess). The majority of the models from this new offering will be presented from autumn 2021;
  • Rolling out the "connected boat" systems to improve the on-board experience and further enhance the services offered by dealers;
  • Strengthening the Group's ecological solutions, with the arrival of electric propulsion units offered for an initial selection of sailing yachts and motorboats.

Housing Division

The Group is forecasting a gradual upturn in demand from outdoor hospitality customers from May 2021. This is expected to be accompanied by a resumption of investment in leisure home fleets, paving the way for the Housing Division to achieve growth of around 5% to 6% compared with FY 2020 on a pro forma basis.

The Group's consolidated business is therefore expected to stabilize this year at the level from the 2020 calendar year. The progress with the order books to date covers more than 90% of this revenue forecast.

Income from ordinary operations growth

Due to the capacity adaptation measures rolled out in 2020, and the reduction of various fixed costs, the Group is forecasting very significant earnings growth from this year: income from ordinary operations for FY 2021 is expected to increase by over 60% compared with the 2020 calendar year, which came in at €27.5m.

These forecasts include the consequences of February's cyberattack, which will have led to a considerable slowdown in the Group's production activities over one month.

The year-end net cash position is expected to remain positive, excluding potential acquisitions.

Groupe Beneteau closed out FY 2019-2020 (16-month transition year ended December 31, 2020) with revenues of €1,344.4m (-15.1% based on reported data). Following a financial year that exceptionally included two four-month periods with low levels of revenues and traditionally negative EBIT, EBITDA is not particularly representative of the standard level of profitability. However, at €93m, representing 7% of revenues, it shows resilience thanks to the first effects of the industrial adaptation and indirect cost reduction measures.

Healthy financial position despite a year affected by the crisis in 2020

For the last four months of 2020, income from ordinary operations, which is traditionally negative during this period due to the seasonality of the business, came to -€38.1m, with a limited contraction of €3.1m compared with the last four months of 2019.

Reflecting the impacts of the health crisis on operations, the contraction in sales (-€17.7m), which particularly concerns the Housing busines (-€7.8m) and boat charters, was partially offset by the strong upturn in dayboating, as well as major indirect cost reduction measures (+€11.4m), both structural, such as the closure of the Marion site, and linked to the general economic environment, such as the reduction in expenses for shows, profit-sharing and provisions for retirement benefits.

In addition, depreciation charges are down €3.3m for the period, resulting from the Boat Division's realignment around eight strong brands, as well as the measures rolled out to rationalize investments in 2020.

For the 16-month financial year ended December 31, 2020, revenues totaled €1,344.4m, down 15.1% based on reported data compared with the pro forma 16-month period in 2018-2019. EBITDA came to €93m (EBITDA rate of 6.9%), with -€8.1m of income from ordinary operations (income from ordinary operations rate of -0.6%).

Non-recurring items represent -€78.5m, in line with the lower range of the forecasts published (€75m to €90m). They include (i) €31.1m of costs relating to the measures to adapt the cost structure and production capacity in France and internationally, and (ii) €47.3m of impairments of assets (tangible or intangible) and inventories, resulting from the rationalization of the product offering based on the Let's Go Beyond! strategic plan presented in July 2020.

Net income (Group share) for the year therefore represents -€80.9m.

For the pro forma 12-month calendar period (January 1-December 31, 2020), income from ordinary operations came to €27.5m (2.5% of revenues), consistent across the Group's two divisions.

Net cash at December 31, 2020 totaled €93.4m, with strong growth of €171m versus the position at December 31, 2019. This strong cash generation reflects (i) the reduction in inventory for €119m, (ii) the improvement in customer and supplier working capital requirements for €40m, and (iii) the reduction in investments, down €26m (-33%) over the last 12 months.

The free cash flow generated during the 16 months of the financial year is therefore positive, with €25m, despite the negative impact linked to the change of the year-end date.

Groupe Beneteau's Board of Directors has decided to not propose a dividend payment at the Combined General Meeting on June 11, 2021, as a result of the losses recorded for FY 2019-2020.

On May 11, Groupe Beneteau will report its revenues for the first quarter of 2021.

A detailed presentation of the full-year earnings is available on the Groupe Beneteau website.

(1)The full-year consolidated financial statements presented here, as reviewed by the Board of Directors on March 16, 2021, are currently being audited and will be definitively approved for the publication of the annual financial report by the end of April. The Board of Directors will approve the accounts on April 16, 2021.

(2)On August 28, 2020, BENETEAU SA's Extraordinary General Meeting decided to modify its financial year start and end dates, previously set respectively as September 1 of one year and August 31 of the following year, to set them respectively as January 1 and December 31 of each year. The Extraordinary General Meeting decided that the financial year that began on September 1, 2019 would cover a 16-month period. It therefore ended on December 31, 2020.

Related Articles

Rolex Middle Sea Race - The Modern-Day Tritons
Three bronze figures represent Malta's links with the sea The open space outside the City Gate of Malta's capital, Valletta, is dominated by a fountain comprising three bronze figures of mythological Tritons. Posted today at 5:37 pm
What a summer it's been!
RS home you've all had loads of memory-making moments on the water We hope you have all had loads of memory-making moments on the water! It has been so great seeing everyone again at RS events, socials and Shows - it really feels like we have got the RS family back together this year and we can't wait for 2022! Posted today at 2:15 pm
I14 Autumn Pint and Trophy at Itchenor
Including a crew from the German fleet sailing their new boat for the first time Eleven boats arrived on Saturday morning for the Autumn pint, with teams having travelled up from Falmouth and a crew from the German fleet (Dennis Gehrlein and Lasse Neilandt) coming over for a first sail of their new boat. Posted today at 12:27 pm
Inaugural Broadwater Phantom Open
17 competitors given a warm welcome with a mug of hot tea and a bacon roll Seventeen competitors were given a warm Broadwater welcome with a mug of hot tea and a bacon roll, but unfortunately not a lot of wind. Posted today at 11:37 am
RYA appoints new Chief Executive
Sara Sutcliffe MBE appointed to the role The Royal Yachting Association (RYA) has today announced the appointment of Sara Sutcliffe MBE as its new Chief Executive. Posted today at 11:27 am
ILCA 7 UKLA Qualifier 3 at the WPNSA
The return of the U-21 contingent in Portland Harbour Coming into last weekend's UKLA Worlds and Europeans qualifier in Weymouth, the ILCA 7 racing promised to be extremely close. Posted today at 11:19 am
52 Super Series - The winner takes it all...
At stake is the Rolex TP52 World Championship title and the season title Never before has the 52 Super Series seen a finale like that which should unfold next week on the Bay of Palma. At stake are the Rolex TP52 World Championships titles. Posted today at 10:26 am
2022 Dragon Nationals to be held in Falmouth Bay
A full week of competitive racing on the event schedule The 2022 British Open National Championships for Dragon Class boats will take place in Cornwall. Posted today at 9:38 am
GC32 Mar Menor Cup preview
The first time the flying multihulls have visited Spain's famous 170km² salt water lagoon The GC32 foiling catamarans are one week away from entering into combat for a fourth and final time in 2021 with the GC32 Mar Menor Cup which runs from 3rd to the 7th November. Posted today at 9:12 am
For the sheer joy of it. (Part I)
J/Boats' new J/45 is here. So alert the media. Oh. That'd be us… J/Boats' new J/45 is here. So alert the media. Oh. That'd be us… Anyway, we not only know about the J/45, we very much kind of love it. Posted today at 8:00 am