Beneteau in financial loss, but things are looking up
The French sail and motorboat builder has released details on earnings for its 2012/13 financial year.
Sales in the Boat division were up by 2.4 per cent to ˆ624.4m for the full year ended August 31, 2013, compared to fiscal 2012. Operating income came to -ˆ1.3m versus an initial forecast of -ˆ5.5m, thanks to business exceeding the targets set and a positive trend for margins on direct costs.
Beneteau balances its boat division with housing activities. Total group sales were down 12.4 per cent to ˆ815.4m. In the Housing division, sales were down by 13.7 per cent to ˆ191m. Nevertheless, operating income from housing was also better than expected, reaching ˆ2.3m compared with an initial forecast of -ˆ2.0m.
Benteau's leisure home business generated nearly ˆ7m in operating income, two times more than the figure forecast for the year, thanks to the doubling of international sales and the group’s rapid adaptation faced with a significant contraction on the domestic market. Operational losses in the residential housing business came in at -ˆ4.6m compared with an initial forecast of -ˆ5.5m.
In total, the Beneteau Group recorded ˆ1m in operating income, better than the expected operational loss of -ˆ7.5m, reflecting the upturn in earnings on boat boats and housing. After factoring in a financial balance of -ˆ2.6m, a -ˆ0.6m tax expense and a ˆ2.6m share in earnings from associates, the group recorded ˆ0.7m in net income for the year.
'The performances achieved in the 2013 season and the long-term trends for the markets represent positive factors for the 2014 season,' says Beneteau in a statement. 'In North America, the first tentative trends seen in 2013 are encouraging and are being confirmed at the start of this 2014 season.
'Emerging countries in Asia and South America are markets where customers are buying new boats for the first time, benefiting from structural growth, even if the levels of progress on the markets vary depending on the economic environment.
'Caution is still needed in Europe, where markets are rising in certain countries, but falling in others. In view of these varied trends, the European region overall is expected to be stable at best in the 2014 season.'