Bénéteau (BEN) H1 2024 TU earnings summary

Executive summary

• First-half 2024 revenues contracted after a record 2023, in line with expectations and reflecting normalization in demand and inventory adjustments.

• Boat division revenues fell 32% year-over-year, mainly due to reduced dealership inventory and lower demand for small units in the US.

• Premiumization strategy helped offset volume declines, with European brands showing resilience and growth in global sell-out sales.

• Housing division revenues declined 3% year-over-year, with export sales up 24% but domestic French market impacted by high interest rates.

Financial highlights

• Group first-half revenues: €766.4m, down 25.5% year-over-year before IFRS 5 restatement.

• Boat division H1 revenues: €556.6m, down 31.5%; Housing division H1 revenues: €209.8m, down 2.6%.

• Motor boat sales dropped 39% with unit deliveries down over 60%; sailing revenues down 24%.

• American brands' revenues declined 72% in H1, while European brands' global sell-out sales grew over 10%.

Outlook and guidance

• Boat division full-year revenues expected around €1bn, with continued inventory reduction in H2.

• Ordinary operating margin forecast at 3% to 6% for 2024, or 5% to 8% excluding American brands; American brands expected to post a €15m operating loss.

• Adaptation measures include consolidating US production and cost structure adjustments.