19 April 2017
After a tough few years since the financial disruption that started 2008, Ferretti Group has presented a healthy balance sheet for its turnover and profits in 2016, which the company says outperformed its own predictions. Ferretti Group, which owns seven prominent Italian yacht brands, is predicting similarly positive results for this year, and has simultaneously announced a shareholder investment of €46.4 million to boost the already positive growth over the next two years.
For the first time since 2008, the brands that are owned by Ferretti Group returned a net profit of €14 million in 2016, from a consolidated production value of €562.5 million – an increase of over 36 percent on the previous year’s €414.8 million figure and over €6 million higher than the predicted value of €556 million. The annual profit stands in sharp relief against Ferretti Group’s net loss of €29 million (after tax) in 2015, which came after six years of similar negative profit figures.
Ferretti Group’s 2016 EBITDA – a measure used as a representation of a company’s operating profitability, using a company’s net earnings, before interest expenses, taxes, depreciation and amortization are deducted – stood at €52.7 million (compared to €7 million in 2015).
The end of 2016, after the annual boat show season in Europe and the US, saw a serial brand order intake of over €401 million, an increase of more than €170 million from two years previously. It appears that the market is hungry for high quality Italian-built yachts and boats once more.
And recent results continue to feed a sense of bullish confidence. Following the 2016 trend, 2017’s first quarter figures have seen a consolidated production value of €145.8 million, an EBITDA of €11.3 million and an overall profit in excess of €4 million. The production value for the entire year is expected to be in the region of €640 million, giving a year-on-year increase of almost €80 million.
Ferretti Group is owned by China-based Weichai Group and Piero Ferrari, and incorporates a seven leading Italian yacht brands, including Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN and Custom Line. Although the Group’s yachts are built in Italy, it has subsidiaries in the US and Asia, as well as a global network of 60 dealers with a presence in over 80 countries.
At a press event to announce the news, Alberto Galassi, CEO of Ferretti Group said that the objective for 2017 is to consolidate a leadership position. He confirmed that a €46.5 million investment will be allocated for research and development of new models and technology (€25 million) as well as an expected €21.4 million investment in production capacity growth between the end of this year and 2018, through recruitment of up to 80 new staff.
This investment will be spread across production sites in Lombardy, Liguria, Emilia Romagna and Marche, said Galassi, but it will be more concentrated on the Group’s Ancona ‘Superyacht Yard’ site where CRN, Riva and Pershing brands are built in steel and aluminium, and where and Custom Line production in fibre glass is expected to be relocated.
The anticipated growth is dependent on reduction in labour costs, linked to the application of new welfare regulations, as well as bilateral agreements with trade unions, for which there are discussions already underway.
In a three-year period Ferretti Group proved to be a company able to accomplish a real turnaround, obtaining great commercial success, which led to well-above-expected financial results” said Galassi. “The new models have become the most important drivers of growth thanks to their design, quality and high standards of innovation, which made them objects of desire since their debut.
Galassi said he was particularly proud to have led the Group to double-digit net results, going on to honour the legacy of Carlo Riva, who had passed away just days before the announcement.
Galassi went on to say that the Ferretti brands are doing well in the US, as well as the traditional European market, and that Asia has returned to previous high water marks. There will be nine new products presented by the Group in the near future, it was confirmed.