revenues at 183 million in the first three months of 2023- Corriere.it

The one approved by the Sanlorenzo board of directors was very successful in the quarter, with new net revenues of 183.7 million euros (+11.8% YoY), Ebitda at 31.2 million euros (+21.2% YoY), increase in margins at all levels of the income statement, solid backlog at 1.24 billion, 92% sold to end customers, with deliveries expected until 2026. 2023 guidance confirmed, with double-digit growth in the main financial indicators.

The order book

In line with what was announced in our 2023-2025 Business Plan – commented Massimo Perotti, Chairman and Chief Executive Officer of the company – the results for this first quarter of 2023 demonstrate the strength of the brand and the excellence of the business model of the Sanlorenzo maison, which once again they translate into growing results and substantially in line with our forecasts. Our order portfolio is consistent and of high quality, 92% sold to end customers. The next deliveries are available not before summer 2025 for yachts and not before summer 2026 for superyachts. This combined results in a high degree of visibilitycertainly higher than the sector average, which gives the group an enviable planning capacity. We are sure that the future of the sector will depend on the ability to innovate, especially in the field of sustainability. Therefore, providing concrete answers and with a long-term vision to the need to lead a transition towards zero-emission yachting, we continue to invest in research and development, confident of the goodness of the path we have taken. The strategic strengthening of our production chain also continues: this is demonstrated by the investments to acquire the stake in Sea Energy and the acquisition of the majority of Duerre, guaranteeing us the supply of key processes and the supervision of the exceptional skills offered by our territory.

Quarterly results

Let’s take a closer look at the quarterly results, starting with the newly consolidated net revenues, which amount to 183.7 million euros, up 11.8% compared to the 164.4 million in the same period of the previous year. The Yacht Division reports net new revenues of €117.4 million, in line with annual budget targets. For the Superyacht Division, net new revenues amounted to 46.4 million (+41.4% on the first quarter of 2022). Bluegame’s new net revenues amounted to 19.9 million, up by 38.9% on the first quarter of 2022. The breakdown by geographical area confirms the continuous expansion of the European market, up by 50.3% compared to the first quarter of 2022. The MEA area, up 96.4%, amply compensates for the slowdown in the Americas and APAC.

Investments

Ebitda of 31.2 million euro, up 21.2% compared to 25.7 million in the first quarter of 2022. The new margin on net revenues was 17.0%, up 130 basis points on the same period of the previous year. Ebit of 24.2 million (+22%). The new margin on net revenues of 13.2%, up by 110 basis points over the same period of 2022, against an 18.6% increase in depreciation, equal to 7 million, following the implementation of the significant investments aimed at developing new products and increasing production capacity. Pre-tax result equal to 24 million, up by 22.0% compared to 19.6 million in the first quarter of 2022. The group net result reaches 17.2 million euros, up by 23.0% compared to 14 million in the first quarter of 2022. The margin on new net revenues equals 9.4%, up by 90 basis points compared to the same period of the previous year.

The leftovers

Net working capital as at 31 March 2023 was negative by 28.6 million euros compared to a negative figure of 37 million as at 31 December 2022 and negative by 12.5 million as at 31 March 2022, a physiological normalization but at the same time – yes reads in a note from the company – a confirmation of the efficiency of the business model in terms of the intensity of invested capital. Inventories amounted to €69.8 million (+€16.4 million on 31 December 2022 and -€3.8 million compared to 31 March 2022). The increase compared to the year-end values ​​is due in particular to raw materials and products in progress, reflecting the growing evolution of the order portfolio. Finished product inventories amounted to 17.6 million (+9.4 million compared to the end of 2022). Net organic investments in the first quarter of 2023 amounted to €6 million, substantially in line with €6.3 million in the same period of 2022, of which 40% dedicated to product development and sustainability projects relating to fuel-based technologies cell with green methanol, and 47% focused on expanding production capacity.

The liquidity

The ratio to new net revenues decreased further, settling at 3.3% in the quarter, “mainly as a consequence of a constantly expanding revenue base, against an average investment amount necessary to develop a new model substantially equivalent in time”. The net financial position as at 31 March 2023 was positive by €108.1 million, compared to net cash of €100.3 million as at 31 December 2022 and €54.5 million as at 31 March 2022. Liquidity as at 31 March amounted to 213.2 million, of which 153 million relating to cash and cash equivalents and €60.2 million for other financial assets (+€11.4 million on December 2022 and +€60.5 million on March 2022). Financial investments amounted to 60.0 million, while financial debt amounted to 105.0 million, of which 58.8 million current and 46.2 million non-current. Financial lease liabilities included in accordance with IFRS 16 amount to 8.7 million.

Yacht and superyacht divisions

The backlog as at 31 March 2023 amounted to 1,239.7 million compared to 1,178.0 million as at 31 March 2022. The quarterly order intake of 170.1 million, a return to the physiological seasonal values ​​after the exceptional result of 262.4 million in same period of the previous year. The amount of the gross backlog referring to the current year, equal to 696.5 millionentails excellent visibility on expected revenues in 2023. Visibility on revenues relating to subsequent years continues to be significant, with orders for 543.3 million, favored by the general extension of delivery dates – sold-out up to 2026 for the Superyacht Division – until 2025 for the Yacht Division.

Growth of luxury yachting

As regards the verticalisation strategy in the key supply chains, the note from the board of directors informs that on 23 March Sanlorenzo acquired a 49% stake in Sea Energy Srl, a company active in the energy sector, for a value of almost 2.7 million design, production and installation of electrical systems and naval electronics, while on 3 May it acquired a further 33% stake in Duerre Srl, a company active since the 1940s in the handcrafted production of high quality furnishings, particularly for superyachts, for a consideration of 2.0 million euros. In Duerre srl, therefore, Sanlorenzo now has a majority stake of 66%. Looking at the general perspective, the board acknowledges the fact that luxury yachting, even in a context of evolution that is not easily predictable at a geopolitical and macroeconomic level, it continues to benefit from the growth recorded by Ultra High Net Worth Individuals (Uhnwi), defined as individuals with a personal net worth exceeding 50 million dollars. The penetration rate of yachting among the Uhnwi, historically lower than 5%, is even down compared to 2019 and is estimated to stand at 2.5% in 2023, representing an important growth driver for luxury yachting.

At the center is sustainability

The robust expansion plan of the group’s product portfolio – it is further noted – envisages, in addition to the continuous expansion of the existing ranges, the introduction of two new lines (X-Space for the Superyacht Division and BGM – Bluegame Multi-Hull – for Bluegame ), in addition to the SP (Smart Performance – open coup) line of the Yacht Division introduced in the second half of 2022, with which Sanlorenzo enters new high-potential market segments with new proposals inspired by sustainability criteria, which are receiving a excellent commercial reception. in fact, sustainability is at the center of the development of the new models declined in an ambitious program which sees, for the first time in the nautical sector, the application of technologies focused on the marine use of methanol fuel cells, which will allow the progressive reduction of the environmental impact up to carbon neutrality, the real answer to demand for sustainability in the yachting sector.

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