Grand Banks Yachts’ net profit for 9MFY2024 at multi-year high of $10.9 mil

Gross profit margin for the same period rose to 38.0% from 28.3% in the 9MFY2023.

Grand Banks Yachts has reported a net profit of $10.9 million for the 9MFY2024 ended March 31, 92.8% higher y-o-y and the highest in over 10 years.

Revenue for the period rose by 20.7% y-o-y to $94.2 million.

Gross profit grew by 62.3% y-o-y to $35.8 million while gross profit margin rose to 38.0% from 28.3% in the corresponding period the year before.

According to Grand Banks Yachts, the higher gross profit was thanks to accelerated boat construction activities which helped to clear backlog and saw greater revenue recognition.

For the 3QFY2024, the group reported three new boat orders, bringing the total for the nine-month period to 14 new orders.

Its net order book stood at $122.2 million as at March 31, down from $137.3 million as at Dec 31, 2023.

Looking ahead, the group says it is confident in the long-term growth of the luxury yacht market but it is watching out for potential headwinds such as softer short-term customer demand, rising economic uncertainty from geopolitical tensions, higher-for-longer interest rates and higher operating costs.

“In response, the group will continue to focus on its sales and marketing efforts to maintain a healthy orderbook,” it says in its May 13 statement.

“Despite the challenging environment, the group has continued to deliver improvements in performance. We will continue to focus on improving efficiencies in our boat production to shorten delivery times, while investing heavily in our marketing efforts to further support our sales requirement,” says Grand Banks’ CEO Mark Richards.

As at 9.20am, shares in Grand Banks Yachts are trading 2 cents higher or 5.48% up at 38.5 cents.