Grand Banks Yachts (G50) H1 2024 earnings summary

Executive summary

• 1H FY2024 revenue rose 29.5% YoY to S$65.007m and profit after tax increased 91.7% to S$6.928m, supported by higher production and improved gross margin.

• Higher production activity at Pasir Gudang and revised boat prices lifted gross profit and production efficiency.

Financial highlights

• Gross profit rose 67.1% to S$23.624m; gross margin increased to 36.3% from 28.1%.

• Profit before tax climbed 140.5% to S$10.468m; operating expenses rose 31.9% to S$12.654m, mainly due to boat shows, marketing, professional services and sales commissions.

• Operating cash flow was S$8.857m versus S$11.599m a year earlier.

Outlook and guidance

• Pasir Gudang factory expansion is expected to increase production capacity by 25%, shorten delivery times and support larger, more fuel-efficient yacht models.

• Stuart, Florida service yard development aims to strengthen after-sales service and the US presence.

• The S$137.3m net order book at 31 Dec 2023 provides a buffer against near-term uncertainty; it was S$159.4m at 30 Jun 2023.