MILAN, Aug 30 (Class Editori) — Despite a sales decline in the first half of this year in the APAC region, the Italian manufacturer of luxury yachts based in Ameglia, La Spezia, will increasingly focus on China and other APAC countries.
After strong half-year results, the Group led by Massimo Perotti reported revenues of 388.4 million euros, up 12.6% from the previous year. The order backlog as of June 30 exceeded 1.4 billion euros. EBITDA grew by 20.3% from the first half of 2022 to 67.7 million euros, while net income increased by 20.3% to 39 million euros.
These figures allowed for an increased update of the 2023 forecast, with net revenues anticipated to fall within the 830-850 million euros range. About 89% of this revenue will be covered by orders in the current 2023 portion of the order book, 90% of which are sold to end customers. “Our business model is unique: our average price of 10 million euros means we cater to families with generational wealth,” Perotti explained. “We sell 80 ships annually, which accounts for 7% of the 1,200 boats over 24 meters produced worldwide. These vessels cater to the luxury needs of the projected 2.5% of the world’s ultra-rich, estimated to grow from 270,000 to 380,000 by 2026”.
In this scenario, China and the APAC region will dominate. The breakdown by geographic area confirms the strong growth in the European market, up by 37.1% compared to the first half of 2022, and the Middle East, up by 57.7%. These increases offset the reductions in the Americas (-30.9%), due to a general slowdown influenced by interest rates, and APAC (-14.7%).
Perotti is betting on the “extraordinary transaction” with distributor Simpson Marine, one of the most esteemed brands in the APAC regions. “In the next ten years, there will be significant growth in Asia Pacific, Southeast Asia, and the Chinese market. We therefore plan to acquire the foremost boat distribution company in the industry expected to experience higher growth than its competitors,” Perotti continued.
Perotti plans to expand Simpson Marine after concluding a deal in Hong Kong. “We expect to complete due diligence by the end of September, with the closing in late October or November,” he said. The company, still named Simpson Marine, will be headquartered in Hong Kong with offices in Singapore, China’s Hainan Island, and Shenzhen.
“The investment equals 20 million euros and guarantees Sanlorenzo’s significant presence in the Asia Pacific region due to the 13 showrooms and 10 service centers covering the entire Far East network,” he stated.
Due diligence is taking longer than expected for accounting reasons because Simpson Marine is represented by over 15 companies throughout the Asia Pacific countries where it operates. “Every country has unique accounting regulations that require careful examination. Compared to the initial round in April, performing due diligence is taking us longer than expected due to the difficulty of conducting transactions in various markets outside of Europe with different regulations and currencies, which we must assess meticulously,” he continued, adding that “in the Asia Pacific region, we are assuming a 20% year-on-year revenue growth for the next five years. We want to more than double our current turnover by 2030”. As of 2023, APAC’s turnover was 109 million euros.
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
