BENETEAU (EPA:BEN) - 190429 BENETEAU Half-year earnings H1 2018-19
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29/04/2019 17:40
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Press release - April 29, 2019
2018-19 half-year earnings
- Sustained level of business and consolidated revenue growth of +6.7%
(reported data) and +5.6% (constant exchange rates)
- Increase in EBITDA (+13.9% at constant exchange rates)
- Income from ordinary operations not significant for H1
Outlook for 2018-19
- Full-year outlook confirmed: revenues expected to grow +3 to +5%, with the
rate of income from ordinary operations stable based on reported data
In markets that have grown slightly since the autumn shows, the Group's
revenues are up +5.6% (constant exchange rates) for the first half of the
financial year, thanks to a sustained level of business across both the Boat
and Housing divisions.
EBITDA is up +13.9% at constant exchange rates, in line with the Group's
sustained rate of investment. As billing is concentrated primarily over the
second half of the year, income from ordinary operations is negative at the end
of the first half of this year, as expected in line with previous years.
At March 31, 2019, the order book for the Boat business is up +4.3% based on
reported data (+2.9% at constant exchange rates). For the Housing business, the
order book is down 4.5%.
2018-19 first-half earnings (September 1, 2018 - February 28, 2019)
Change
(constant
(reported exchange
EURm H1 2018-19 H1 2017-18 data) rates)
Revenues 495.9 464.9 +6.7% +5.6%
- Boats 403.8 378.0 +6.8% +5.6%
- Housing 92.1 86.9 +6.0% +6.0%
EBITDA* 32.5 26.1 +24.5% +13.9%
Income from ordinary operations -3.4 -4.4 ns
Net income (Group share) -1.6 0.1 ns
Closing net cash position -98.9 -53.9
* EBITDA: earnings before interest, taxes, depreciation and amortization,
i.e. operating income restated for allocation / reversal of provisions
for liabilities and charges and depreciation charges.
For the first half of 2018-19, consolidated revenues climbed to EUR495.9m, up
+5.6% at constant exchange rates compared with the first half of the previous
year and +6.7% based on reported data.
Income from ordinary operations improved by EUR1m to -EUR3.4m, while net income
is down EUR1.7m to - EUR1.6m with the impact of currency hedging (-EUR2.4m for
the period, versus +EUR2.4m for the first half of 2017-18) and tax (+EUR2.1m
versus +EUR1m for the first half of 2017-18).
Boat Division: contrasting market situations
For the first half of 2018-19, the Boat Division generated revenues of
EUR403.8m, up +5.6% at constant exchange rates compared with the first half of
the previous year and +6.8% based on reported data. In a global market on which
growth is now between 2% and 3%, the Group's revenues are continuing to grow at
twice the market rate.
The Boat Division's growth is being driven by the European brands' good results
on the North American markets and by fleets, with multihulls making strong
progress. Sales in Continental Europe are continuing to progress, while certain
markets such as the UK and Turkey have contracted sharply, resulting in a
slight drop in sales for the European region overall. Sales for the
Asia-Pacific region are down, in markets with low activity levels. Buoyed by
growth in fleet sales and the completion of the Figaro Beneteau 3 program, the
percentage of sailing yachts is up 6 points to 50% of the Boat Division's
revenues for the first half of the year.
The progress with EBITDA reflects the policy to invest in and further
strengthen the product offering. The Boat Division's income from ordinary
operations came to -EUR11m, compared with -EUR11.9m the previous year.
The continued progress with the Transform to Perform plan is reflected in:
- Additional support costs for EUR4.1m (including indirect production labor,
R&D and sales costs);
- Costs linked to the launch of new activities for EUR1.6m (including the Band
of Boats digital platform and Beneteau Boat Club);
- Allocations for investments for EUR2.6m (primarily for products, including
the development of the Excess multihull range with five models, the
development of the Sun Loft 47 and the construction of the first two Excess
12 and 15 boats, which will be released over the next year).
The impact of the euro-dollar exchange rate on income from ordinary operations
is positive, coming in at EUR2.7m.
Housing Division: Leisure Homes business dynamic, but not particularly
representative for the year
For the first half of 2018-19, Housing Division revenues totaled EUR92.1m, up
6% compared with the first half of the previous year. This increase is linked
primarily to a slight time-lag effect with seasonality, with orders and
deliveries recorded earlier in the year.
Income from ordinary operations represents EUR7.7m, compared with EUR7.5m the
previous year, up 2.3%. This increase in operating income is mainly linked to
the growth in volumes delivered at end-February.
Full-year outlook confirmed for 2018-19
In the current market environment, the Group is continuing to forecast
consolidated revenue growth of around +2% to +4% at constant exchange rates and
+3% to +5% on a reported basis. The rate of income from ordinary operations to
revenues is expected to be stable based on reported data.
The Boat Division is forecasting full-year revenue growth of 4 to 6% (reported
data).
The Housing Division expects its full-year revenues to contract slightly, due
to the slowdown on the French Leisure Homes market, which represents almost 85%
of the Division's market. Sales in Italy, Benelux and Spain are expected to see
growth. The rate of operating income is expected to come in slightly lower than
the previous year. For reference, the Residential Housing business is no longer
active in 2018-19.
A detailed presentation of the half-year earnings is available on the Groupe
Beneteau website. The half- year activity report will be available from April
30, 2019.
The next announcement is scheduled for July 11, 2019, when revenues for the
first nine months of FY 2018-19 will be reported.
FINANCIAL GLOSSARY
At constant exchange rates: change in an item calculated by converting the
figures for the first half of 2018-19 based on the rates for FY 2017-18.
EBITDA: earnings before interest, taxes, depreciation and amortization, i.e.
operating income restated for allocation / reversal of provisions for
liabilities and charges and depreciation charges.
Free cash flow: cash generated by the company during the reporting period
before dividend payments and changes in treasury stock.
Net cash: cash and cash equivalents after deducting financial debt and
borrowings.
Income from ordinary operations adjusted for currency hedging: income from
ordinary operations after taking into account currency hedging income and
expenses. Income from ordinary operations adjusted for currency hedging is an
alternative performance indicator that makes it possible to measure the Group's
performance after the impact of foreign exchange hedging. Since 2016, income
and expenses from currency hedging primarily reflect the difference between
forward purchase / sales positions and the accounting exchange rate for
recording transactions in currencies (USD, PLN). The Group hedges its
commercial currency risk based exclusively on currency forwards.
ABOUT GROUPE BENETEAU
As the boating industry's global market leader, Groupe Beneteau, through its
Boat division's 12 brands, offers over 200 recreational boat models serving its
customers' diverse navigational needs and uses, from sailing to motorboating,
monohulls and catamarans.
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 7,400 people, primarily in France, the US, Poland, Italy and
China.
FY 2017-2018 Group revenues : EUR 1287.2 M
Motorboat 47.5 %
Sailboat 37.5 %
Housing 15.0 %
CONTACTS - GROUPE BENETEAU
INVESTORS AND PRESS CONTACT
Mirna Cieniewicz
m.cieniewicz@beneteau-group.com
Tel +33 (0)2 51 26 21 25
SHAREHOLDER CONTACT
Yannick Coicaud-Thomas
y.coicaud.thomas@beneteau-group.com
Address: 16 bd de la Mer ? CS 43319
85803 Saint Gilles-Croix-de-Vie Cedex - France
www.beneteau-group.com