Italian shipyard, Sanlorenzo has published its consolidated financial statements after the board of directors met under the chairmanship of CEO Mr Massimo Perotti. Following the draft financial statements c. 31 December 2019, Sanlorenzo has now confirmed that the financial statements have been approved.
“The results that have been approved today confirm the achievement of the targets indicated in the IPO phase, with figures at the high end of the forecasts,” states Perotti. “We are extremely pleased with these figures and with all Group divisions having recorded a positive trend.
“We will soon release the results of the first quarter 2020 which, to date, show a positive sales trend and a backlog exceeding 500 million Euros as [of] 29 February, ensuring we have important visibility for 2020 and 2021,” he continues. “At the Board of Directors meeting, scheduled on 11 May 2020, we will also indicate the guidance for 2020, also considering the extraordinary situation linked to the COVID-19.”
“We will soon release the results of the first quarter 2020 which, to date, show a positive sales trend and a backlog exceeding 500 million Euros as [of] 29 February, ensuring we have important visibility for 2020 and 2021. At the Board of Directors meeting, scheduled on 11 May 2020, we will also indicate the guidance for 2020, also considering the extraordinary situation linked to the COVID-19.”
- Mr Massimo Perotti, CEO, Sanlorenzo
In response to the spread of the coronavirus across Italy and the rest of the world, Perotti has explained that production at Sanlorenzo is permitted to continue under strict measures to safeguard workers.
“The authorities (with the prime ministerial decree of 11 March) have strongly urged the entire population of Italy to comply with standards of caution in order to prevent the spread of the coronavirus,” says Perotti. “At present, production activities are permitted to continue, though with specific measures which the company is rigorously carrying out to safeguard the health of workers and to block any possible propagation of the virus. Though we are in a situation of clear national emergency, at present it does not compromise the operations of the company.”
Due to the continuous change in requirements, SuperyachtNews reached out to Sanlorenzo again this morning regarding production at its facilities. “Sanlorenzo’s production activities are confirmed to continue, according to the terms of the law regarding the prevention and management of alarm covid-19, in order to protect employees, suppliers, etc”, a spokesperson explained.
Illustrating the shipyard’s strong position in the superyacht industry, end of year financial results show net revenues new yachts (calculated as the sum of revenues from contracts with customers relating to new yachts net of relative fees) for 2019 amounted to €455.9 million, which is an increase of 39.3% compared to €327.3 million in 2018. Sanlorenzo’s superyacht division also recorded an increase in net revenues new yachts of 47.3%, from €101.9 million in 2018 to €150.0 million in 2019 (32.9% of the total).
As expected, the European market generated the lion’s share of revenue at Sanlorenzo, amassing €279.6 million (of which €60.0 million generated in Italy), equal to 61.3% of the total, up by 48.7% compared to 2018. But Sanlorenzo has also reported that significant growth was recorded in the Middle East and Africa, with Net Revenues New Yachts up by 80.3% reaching €31.6 million (6.9% of the total).
For 2019, Sanlorenzo confirmed that adjusted EBITDA amounted to €66.0 million, up by 73.4% compared to €38.1 million in 2018, with a margin of 14.5% on net revenues new yachts (11.6% in 2018). According to the shipyard these are linked to the impact on revenues of the progressive increase in the price of new orders of the superyacht division, and to the positive impact of the now-operational investments for the increase of production capacity, which have facilitated a reduction in operating expenses.
Sanlorenzo’s backlog, which is calculated as the sum of the value of all orders and sales contracts signed with customers or brand representatives relating to yachts for delivery or delivered in the current financial year, or for delivery in subsequent financial years, amounted to €444.3 million at 31 December 2019. Of this figure, €327.8 million related to 2020 and €116.5 million to subsequent financial years, showing an increase of 10.4% compared to the end of 2018.
As of now, Sanlorenzo has reiterated that the impact of the current situation linked to the spread of the Covid-19 virus has not materially affected business operations. With regards to the results expected for the current financial year, the company is constantly monitoring the development of the situation and its effects on the market and claims it has already undertaken significant actions to protect the group and mitigate the possible negative effects.
Sanlorenzo is continuing to pursue the strategic path undertaken for development and growth also with regard to the 2020 financial year, on the basis of guidelines already communicated on occasion of the IPO.
According to The Superyacht Agency, there are 41 yachts over 30m on the Sanlorenzo order book. This year, the shipyard plans to deliver a staggering total of 24 yachts, nine of which have been launched. Sanlorenzo is among the most consistent shipyards in today’s market, having delivered at least one vessel per annum for the last 16 years.
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