Catana Group (CATG) H1 23/24 earnings summary

Executive summary

• Revenue grew 11% year-over-year to €105.7M, driven by strong sales of new boats, especially the BALI range, despite a less buoyant market environment.

• Operating income rose 36% to €16.8M, with margin recovery after prior cost pressures; net income (group share) increased 54% to €13.5M, representing 12.7% of revenue.

• The new YOT motorboat line is in pre-series, with significant sales expected from FY 2024/25 after the new Aveiro (Portugal) plant becomes operational.

• Cash position remains strong at €66.5M, despite a temporary €14.5M increase in working capital due to delivery seasonality.

• Investments of €10.6M were made, mainly for the new Portuguese plant and modernization of production facilities.

Financial highlights

• Revenue: €105.7M for H1 2023/24, up from €94.9M in H1 2022/23.

• Operating income: €16.8M (15.9% margin), up from €12.3M (13%) year-over-year.

• Net income (group share): €13.5M, up from €8.7M year-over-year.

• EBITDA (approximated by cash flow from operations): €17.9M, up from €14.6M year-over-year.

• EPS: €0.45 vs €0.29 year-over-year.

Outlook and guidance

• The group expects significant growth from the YOT motorboat line starting FY 2024/25, with the new Aveiro plant operational by autumn 2024.

• Management is pursuing aggressive commercial strategies and cost negotiations to address market sluggishness and maintain margins.

• Long-term growth is supported by expansion projects in Canet-en-Roussillon and new large BALI models.