Grand Banks Yachts G50 has reported earnings of $5.7 million for the 9MFY2023 ended March 31, up from the $0.1 million earnings in the corresponding period the year before. The nine-month net profit is the highest in over a decade and surpasses the company’s pre-Covid-19 levels.
Revenue grew by 42.1% y-o-y to $78.0 million as boat-building activities grew, underscoring a strong recovery from the impact of Covid-19-related disruptions in the year before.
Gross profit increased by 67.1% y-o-y to $22.1 million as operations resumed. The higher gross profit was also due to the higher boat prices on the back of higher costs. Accordingly, gross profit margin for the 9MFY2023 increased to 28.3% from 24.1% a year ago.
In the 3QFY2023, Grand Banks Yachts recorded five new boat orders and one trade-in boat order, bringing its net order book to $178.0 million as at March 31, up from the $169.0 million as at Dec 31, 2022.
In its statement, the company announced that it has secured its first order for its latest Palm Beach 85 during the quarter. Set to debut in 1QFY2025, the PB85 is the largest Palm Beach model to date.
It also revealed that it was finalising its plan to build a new single-story facility at its Pasir Gudang yard. The update will add approximately 25% more usable floor space to the current 550,000 square feet and will enable the company to ramp up its production capacity and improve its boat delivery times. Construction of this new facility will be subjected to ongoing financing arrangements.
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“We are extremely pleased to record our highest nine-month net profit in more than a decade. The recovery exceeds even pre-pandemic levels. Despite the challenges of the pandemic, the group has unveiled a new line of larger, sleeker and more energy-efficient boats, reflecting our confidence in the long-term luxury yacht market. We will continue to improve our sales and marketing channels to grow sales volume, while maintaining a healthy order book to buffer against economic headwinds,” says Mark Richards, CEO of Grand Banks Yachts.
Shares in Grand Banks closed flat at 30 cents on May 12.
