SINGAPORE (Aug 29): Grand Banks Yachts' 4Q18 earnings increased more than sixfold to $6.24 million, compared to $1.01 million in 4Q17.
This brings FY18 earnings to a 10-year high of $9.46 million, a significant increase from $0.52 million in FY17.
Revenue for the quarter was however 9.6% lower at $18.0 million from $19.9 million a year ago. This was mainly due to fewer in trade-in boat sales.
Cost of sales decreased by 31.4% y-o-y to $11.1 million, bringing 4Q18 gross profit to $6.90 million, 84.6% higher than $3.74 million last year.
Gross profit margin increased to 38.8% from 18.8% in the previous year.
Selling and marketing expenses was 71.4% higher y-o-y at $2.50 million, while administrative expenses increased by 71.4% also to $1.43 million.
Looking forward, the group will continue to boost the profile of both the Grand Banks and Palm Beach brands by marketing its yachts at leading boat shows. It is currently building a new long-range cruiser, the Grand Banks 52, which will debut in FY19.
Heine Askaer-Jensen, chairman of Grand Banks says, “With our enhanced boat designs, upgraded production capabilities and healthy net order book, we are confident that Grand Banks will continue to grow from strength to strength as a leading provider of luxury motor yachts. We are grateful to CEO Mark Richards and his management team for their efforts over the last few years to integrate our world-class boat brands and turn the company around.”
Shares in Grand Banks Yachts closed at 29 cents on Wednesday.
