Please select your home edition
J Composites 2022 - J99 LEADERBOARD

Groupé Beneteau 2019-20 earnings and FY 2021 growth forecast

by Groupé Beneteau 18 Mar 2021 09:45 PDT
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

Groupe Beneteau & Vision Marine launch partnership
To develop and market 100% electric outboard-equipped powerboats Groupe Beneteau launches a partnership with Vision Marine Technologies to develop and market 100% electric outboard-equipped powerboats. Posted on 18 Jul
Groupe Beneteau Q1 business and outlook for 2022
Boat and leisure home markets performing well Groupe Beneteau recorded strong demand across both of its markets, with 2022 first-quarter revenues of €317m, up 10.6% based on reported data (+8.9% at constant exchange rates). Posted on 12 May
Groupe Beneteau 2021 Earnings: Strong growth
Income from ordinary operations higher than the pre-Covid level from 2019 2021 earnings: strong growth in revenues, income from ordinary operations and cash. Trend for robust growth expected to continue in 2022. Posted on 18 Mar
Groupe Beneteau acquires Starfisher shipyard
Strengthening its production capacity with the Portuguese shipyard Groupe Beneteau has announced the acquisition of STARFISHER, which has become GB PORTUGAL, thereby strengthening its production capacity for 25 to 35-foot powerboats by establishing itself in Portugal. Posted on 21 Oct 2021
Horizon 2021 for Groupe Beneteau Powerboats
SeanApps connected boat solution revealed, going electric, and new mono and multihull models! On the top of the innovations and game-changing solutions introduced during the presentation, Gianguido Girotti, Deputy CEO in charge of the Brand & Product Strategy, revealed the SeanApps connected boat solution. Posted on 11 Sep 2021
Sailing Horizon for Groupe Beneteau
SEANAPPS connected boat solution revealed, and going electric... Groupe Beneteau charters its course to develop new boating experiences. In Cannes, Groupe Beneteau dedicated a unique gathering night with its international community to announce major transformations in a world in constant evolution. Posted on 11 Sep 2021
Groupe Beneteau: 2021 guidance upwards
Acceleration of order book growth to €1,800m (+55%) at end-June Thanks to the positive trends for the boat and outdoor accommodation markets, and the performance of its two divisions, Groupe Beneteau is once again raising its full-year revenue and income from ordinary operations guidance for 2021. Posted on 29 Jul 2021
Martin Schemkes takes the helm of DELPHIA brand
Appointment announced today by Groupe Beneteau Groupe Beneteau is announcing today that Martin Schemkes has been appointed Brand Director of DELPHIA. Posted on 30 Mar 2021
2019-20 16-month revenues
Better end to the year than forecast. 2019-20 revenues: better end to the year than forecast thanks in particular to strong demand for outboard boats in line with current boating trends. Posted on 26 Feb 2021
Production activities gradually starting up again
After the cyberattack on Groupe Beneteau on February 19 One week after the cyberattack on Groupe Beneteau on February 19, the joint efforts by its in-house teams and external IT experts make it possible to envisage gradually starting up production activities again at certain plants from Friday February 26. Posted on 26 Feb 2021
J Composites 2022 - J99 FOOTERVaikobi 2021 Boots - FOOTERSelden 2020 - FOOTER