July 31 2018
The development of Catana Group is based on strong growth in new boat sales, driven by the demand of the pleasure catamaran market and a solid product plan, balancing between the Bali range, highly innovative mid-range models, and the Catana range, positioned on luxurious grand travel models.
The half-year figures released by Catana Group confirm the soundness of the strategy of the French group, deployed three and a half years ago, with the launch of the Bali range, which completes the Catana brand.
In the end, the world number 4 in the sector has solid financial fundamentals, based on profitable growth. The global success of the Bali brand has become financially virtuous once the industrial dead bridge has passed.
Catana Group's half-year sales, on February 28, show a growth of 43% (!), at 26.5 million euros vs 18.5 million a year earlier, driven by the sale of new boats, and records a very strong improvement in its profitability, due to the optimization of its industrial processes (lean management, recruitment).
Optimization of Industrial Processes
At the industrial level, the group has entered the capital of its Tunisian subcontractor Haco, which since 2014 manufactured small polyester parts and then the "rental" version of Bali 4.0 a year later. To secure this investment, both parties signed a shareholder agreement giving Catana Group the possibility to increase its participation for its sole convenience and at any moment up to 50% of the capital. This faculty, combined with a very broad control of French in the strategic decisions of Haco place Catana Group in the obligation to entirely consolidate this structure.
Very Strong Improvement in Profitability
Net income for the consolidated group posted a positive balance of € 1.8 million, while the group's share amounted to € 1.3 million compared to a loss of € 0.8 million in February 2017
Net cash from operating activities generated a resource of € 3 million versus € 1.7 million in February 2017, thanks to a very positive cash flow of € 2.8 million compared to € 0.4 million in February 2017.
In a context of accelerating the development plan for Catana and Bali ranges, this operating resource makes it easy to finance investment flows (- € 1.9 million) and flows related to financing operations (- € 0.4 million).
Already in a very small debt, Catana Group again sees its net debt decrease significantly. Thus, this amounted to € 0.9 million against a net debt of € 3.9 million in February 2017.
The net debt of the group is virtually nil, confirming the forecast of a change in net cash at the next closing on 31 / 08/18, given the good second half of operations expected, and the impact of the recent capital increase of € 3.8 million last April.
30% OF Turnover Increase Expected this Year
The predictions announced by the French group, both for the Bali range, supported by the new Bali 4.1 and the future Bali 5.4 which has already a full load of orders, that for Catana, which benefits from the successful launch of the Catana 53, suggests a level of sales of new boats over € 42 million, which, supplemented by the group's other activities (opportunities, brokerage, services), should enable the group to reach a total sales figure for this fiscal year 2017/2018. Approximately amounting to € 55 million, that is up nearly 30% compared to 2017.
Beyond the current fiscal year, the order book also gives a very high visibility for 2018/2019 with € 34 million in business already accounting for nearly 60% of the target for the coming financial year which should lead to once again the group to record a growth of sales of new boats of the order of 30%.
Analysis - the French group has managed to position itself as one of the major projects in the multihulls sector, completing its Catana range by the Bali brand. The success of Bali comes from a unique positioning, based on innovation, and a true export strategy. Once this new brand has come to a standstill (development, construction and marketing costs), the French group's economic model will be very healthy, driven by a particularly dynamic market.