Sanlorenzo: orders slow but revenues grow
With signs of the market descending from the highs of the new-build boom, the shipyard’s financial position remains healthy as it eyes future investments…
The highly anticipated 50Steel is expected for delivery in the summer of 2024
Sanlorenzo has secured double-digit growth across key financial metrics, as reported in its preliminary consolidated results as of 31 December 2023. Despite a slight decline in orders throughout 2023, which is illustrative of the market ‘normalising’, the Italian shipyard’s revenue growth remained strong, with a 21.5% year-on-year increase of €157.5 million, with an 18.7% profit margin on revenues.
“The performance of the year is substantiated by the growth of all the main metrics – at income and assets level, as well as in terms of constant ability to generate new cash to support future investments and the remuneration of our shareholders,” says CEO Massimo Perotti.
Revenue from new-build yachts for the year amounted to €840.2 million, up by 13.4% compared to €740.7 million in 2022. In the fourth quarter, net revenues from newly built yachts equalled €214.2 million, up by 8.9% compared to €196.6 million in the same period last year.
The firm’s Superyacht Division generated net revenues of €238.3 million, up by 19.0%, led by the Steel line and the contribution of the new X-Space. Its Yacht Division was the primary driver of its growth, however, with net revenues at €510.6 million, up by 9.9% compared to 2022, with a particular focus on its cross-over SX line.
The shipyard’s performance specifically benefited from the launch of the SX100 from the Yacht Division, the X-Space of the Superyacht Division, and the multi-hull BGM75 of Bluegame, as well as other models that will be presented later this year. These include the SD132, the shipyard’s first composite 40-metre yacht, and the awaited 50Steel, the first superyacht in the world with the integration of fuel-cell systems running on green hydrogen, continuously reformed on board from green methanol, to generate electricity to power the yacht hotel services.
The order intake of the fourth quarter of 2023 amounted to €207.8 million, marking a sizeable 30% increase compared to the same period in 2022 (€159.1 million), and added to €604.5 million of the first nine months of the year, totalling €812.3 million of new orders collected during the entire year.
This, however, represents a slight decline from the €894.7 million in orders during 2022, suggesting a normalisation of the market. Sanlorenzo attributes this partially to longer waiting times for yacht delivery, given the planned deliveries up to 2028.
Sanlorenzo’s backlog as of 31 December 2023 amounts to €1.0417 billion, with 90% of orders already sold to final clients. The amount of backlog deferred to in 2024, equal to €587.1 million, allows a consistent coverage of the expected revenues in the current year, with orders for €454.6 million beyond 2024, with sold deliveries reaching into 2026 for the Yacht Division and up to 2028 for the Superyacht Division. Bluegame enjoys deliveries up to 2025, a distinctively long timeframe considering it focuses on the sub-24-metre segment.
Net working capital was negative €34.9 million, compared to a negative figure of €37.0 million at the end of 2022. Meanwhile, the firm’s net cash position as of 31 December 2023 was equal to €140.5 million, up by €40.2 million compared to last year, suggesting that the company has a large amount of long-term debt or has assets tied up in long-term investments.
“We signed in December the contract for the acquisition of Simpson Marine, allowing us direct control in the APAC area towards which we have significantly high expectations in the medium-long term,” says Perroti. The aim is to create a synergic capillary structure in Southeast Asia with its international development strategy of services.
Looking forward, Sanlorenzo invested €44.5 million, around 90% of which is dedicated to expanding production capacity and developing new models and ranges. The company also signed a Memorandum of Understanding to explore a possible partnership with the Nautor Swan Group in December.
“This fits perfectly into our long-term strategy, especially in terms of sustainability given the obvious complementarity between the world of sailing and the cutting-edge technologies that we are applying for the use of green methanol and hydrogen as yachting fuels of the future,” concludes Perrotti.
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