Sanlorenzo hits $100 million in profits and capitalizes on the "Work-from-Yacht" phenomenon.
Three possible lines of development beyond the core business of selling new boats
The Sanlorenzo group's press release, in addition to confirming the 2023 financial results already announced in early February, provides some interesting information on the future of yachting and the future growth strategies of the Ameglia (La Spezia) shipyard.
Speaking of numbers, the 2024 guidance highlights the goal of bringing revenues to 880-910 million euros (+7%), EBITDA to 168-176 million euros (+9%), and net profit to 99-101 million euros (+8%).
2023 closed with Net New Revenues of 742,5 million euros (+14,2% compared to 2022), EBITDA of 142,5 million (+26%), EBIT of 116,1 million (+30,2%) and a pre-tax profit of 122 million (+37,1%).
In the paragraph dedicated to the foreseeable evolution of management, it is recalled that "the Covid-19 pandemic has triggered a structural paradigm shift in the mentality of UHNWIs (Ultra High Net Worth Individuals, ed) and yachting responds well to new lifestyles. The recent technological evolution of Starlink, which allows for fast satellite connectivity even in the open ocean or on the most remote islands, allowing work to be carried out on board, has in fact driven the 'Work-from-Yacht' phenomenon. The average time that the owner can spend on board – Sanlorenzo emphasizes – is therefore extended, effectively allowing for an increased attractiveness to younger, working clientele. Proof of this is the analysis of Sanlorenzo shipowners showing an increase in the average time of use of yachts per season from 60 to 120 days. Management believes that this new type of yachtsmen structurally add to the historic clientele of traditional yachting." Furthermore, "the trend of lowering the average age of Sanlorenzo superyacht buyers, from 56 (in the 2016-2020 period) to 49 (in the 2021-2023 period), if confirmed, will create the conditions for adding a new typology and generation of owners to the Sanlorenzo Club of highly loyal customers."
Also particularly relevant is the section dedicated to "Possible development directions beyond the core business of new boat sales." One of these concerns vertical integration "upstream, to support the growth of the supply chain in step with the group's growth; downstream, to gain direct access to end customers and internalize retail margins in highly strategic geographic areas over the long term (e.g., Simpson Marine in the APAC region)." Another concerns the "development of services, a huge potential currently only minimally exploited: refits, a high-margin, acyclical business that benefits from synergies with Sanlorenzo's customer base, requiring the acquisition of suitable infrastructure; and charters, a driving force for further expanding the Sanlorenzo customer experience, leveraging an existing direct distribution network from East to West." The third possible development direction is the "acquisition of high-end niche brands, in market segments that do not overlap with those where Sanlorenzo is already present, with clear synergies in terms of technology and geographic distribution; for example, in the sailing yacht sector, we recall the Memorandum of Understanding signed at the end of December 2023 to explore a partnership with the Finnish shipyard Nautor Swan."
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