Sanlorenzo, the industrial plan focuses on sustainability to grow
Along the lines already outlined, Massimo Perotti, the president and CEO of Sanlorenzo, presents the objectives and strategies of the 2023-2025 business plan. Three-year period in which the group expects an average annual growth in "High Single-Digit" revenues, starting from a forecast for 2023 among the 810-830 million euros, up 11% compared to 2022. Perotti also "sees" an Ebitda margin equal to or greater than 19.5% in 2025, compared to 17.6% in 2022, while he estimates a forecast of the net financial position of between 185 and 205 million, with cash generation of over 100 million.
A plan that will be supported by investments mainly concentrated on the research and development of new high-tech models and on increasing production capacity. Investments of around 150 million are planned over the three-year period. And which also foresees "an M&A operation over the next twelve months". It's an operation in the pipeline and in our heads”.
The starting points
Sanlorenzo closes 2022 with net revenues of 740.7 million euros, up 26.4% compared to 2021. The group net result reaches 74.2 million, up 45.4% compared to the previous year. The gross operating margin (Ebitda) amounted to 130.2 million (+36.3%). The board of directors resolved to propose to the shareholders' meeting the payment of a dividend, relating to the 2022 financial year, equal to 0.66 euros per share, which corresponds to a pay-out of approximately 31% of the group's net result and approximately 10% higher than the 2021 dividend.
In the fourth quarter, revenues amounted to 196.6 million, up 24.9% compared to 2021. "At the end of this year - continues the chairman - we deliver to our shareholders and all stakeholders three years of results excellent companies that have exceeded our own forecasts every year and have seen a compound annual growth rate of 17.6%, a doubling of EBITDA, a 310 basis point increase in EBITDA margin, nearly tripled net income, over 100 million euros of cash flow creation, despite having distributed dividends of around 31 million".
It's still. The net backlog (the sum of the value of all orders and sales contracts signed with customers or with brand representatives relating to yachts being delivered or delivered in the current year or being delivered in subsequent years) as at 31 December 2022, less new net revenues achieved during the year amounted to 1,069.6 million euros, compared to 915.6 million as at 31 December 2021, 93% of which sold to end customers. Even before the beginning of the year, the amount of the backlog referring to 2023, equal to 617.4 million, allows an extremely high coverage of the revenues expected in the current year (75.3% calculated on the 2023 guidance). Visibility into subsequent years' revenues, with orders totaling €452.2 million beyond 2023, is at its highest level ever.
The moment for boating is good. The Sanlorenzo management expects the yachting market to grow constantly. "THEThe number of Ultra High Net Worth Individuals, with available liquidity of at least $50 million - they explain - is expected to reach 385,000 people in 2026, with an annual increase of 24,000 units. At the same time, the supply of yachts over 24 meters will grow at a lower annual rate, reaching 1,203 units in 2023. This dynamic will lead to a reduction in the penetration rate of yachting towards Ultra High Net Worth Individuals from the already low 3.0 % to 2.5%, thus further increasing the high potential”.
How will Sanlorenzo grow? With the challenge of technology towards zero emissions. We already know the projects that will lead the group to launch the first 50Steel in 2024 equipped with methanol fuel cells to power all on-board services, to then arrive, in 2028, with the launch of a first 50 Steel superyacht powered solely to methanol.
In parallel, in the <24m segment, they advance two Bluegame projects based on the use of hydrogen: the BGH tender, chosen by the New York Yacht Club as a "chase boat" to accompany American Magic during the next America's Cup to be held in Barcelona in 2024, and the subsequent BGM65HH (hydrogen-hybrid). BGH, whose launch is scheduled for June 2023, a 10-metre boat that will reach a speed of 50 knots and a range of 180 miles with zero emissions, powered exclusively by hydrogen fuel cells, combined with foils. The same ones that will be installed in the BGM65HH multihull combined with the new generation of Volvo Penta hybrid engines.
The plan provides for more new models. Perotti talks about the introduction of new ranges with the entry into different segments, such as multiscafo, and at the same time an enrichment of those in the portfolio, bringing the models from the current 26 to 36, of which 17 of the Yacht Business Unit, 8 of the Superyacht Business Unit and 11 Bluegame.
Another point, that of services. The plan provides for the strengthening of a premium package including the Sanlorenzo Charter Fleet, the first single-brand charter fleet in the world; the Sanlorenzo Academy for crew training; targeted forms of leasing/financing and insurance; maintenance and refitting and restyling services.
Refitting is clearly growing. “The world fleet of yachts >30m is constantly increasing (in 2021 it amounted to 5,396 units) and the refit market is expected to grow to a greater extent, as happened from 2017 to 2021 with CAGR +16.4% for yachts >40m ”.
It's still. Perotti's intentions are to strengthen direct distribution in key markets. The acquisition of Simpson Marine is expected within the first half of 2023, a network of 12 showrooms and 10 service centers covering the entire Far East. And finally, an increase in production capacity. The current one can count on building site surfaces of 100,000 m2, used at 79%. The plan plans to expand capacity by 25% by 2025, bringing its utilization to around 85%.