SINGAPORE (Nov 13): Grand Banks Yachts announced a net profit of $0.62 million for 1Q18, trebling from its earnings of $0.2 million posted in 1Q17.
In a Monday regulatory filing, the manufacturer and retailer of luxury motor yachts says its surge in net profit was driven by yachts sales and operational improvements, even as it reported fresh orders for new designs.
Revenue grew 63.6% over the quarter to $21.3 million from $13 million previously, driven by the sale of three traded-in boats and an inventory boat over the quarter, as well as more yachts reaching construction milestones for revenue recognition over the period under review.
In line with the higher revenue, gross profit grew 62.4% to $3.7 million in 1Q18 compared to $2.3 million a year ago, with gross profit margin remaining relatively level at 17.2% and 17.3% over the comparative periods.
The group says this this reflects the sales mix in 1Q18 which include new and inventory yachts as well as trade-in boats, which typically have lower margins.
The latest set of results brings earnings per share (EPS) for 3Q up to 0.34 cent compared to 0.11 cent in 1Q17, and net asset value (NAV) per share to 24.94 cents as at end-Sept, up from 24.54 cents as at end-June this year.
Grand Banks Yachts says its improved financial results underscore the progress of its restructuring efforts at its yard in Pasir Gudang, Johor.
Meanwhile, eight new boat orders have lifted Grand Banks Yachts’ net order book to $38.6 million as at end-Sept.
Looking ahead, the group also expects to lift group-wide utilisation rates, expand its production capacity and reduce man hours required per boat with new automation, streamlined operations and the introduction of new materials.
Shares in Grand Banks Yachts closed 1.6% lower at 30 cents on Monday.
