The figures published on 3 June by Catana Group, builder of the Catana, Bali and YOT Power Catamarans, are excellent, with growth at every level, including a 54% increase in net profit, group share!

The interim results for the first half of 2023/2024 confirm Catana Group's expected growth trajectory, despite a more wait-and-see market in which demand has slowed sharply in recent months.

No longer suffering from the effects of inflation and component shortages, the Group founded by Olivier Poncin has seen a significant improvement in profitability, enabling it to adapt to the current environment while continuing to develop its future growth drivers.  

Sales of new yachts, particularly the Bali range, continue to drive the Group's 11% growth, despite a difficult market environment.

It should be noted that the half-year figures do not yet include sales of powerboats under the new "YOT" brand, for which pre-production started in the first half, pending commissioning of the new factory in Aveiro (Portugal).

This plant should be fully operational by autumn 2024, with the first significant billings in the 2024/2025 financial year.

The Group's operating profit rose by 36% to €16.8m, representing almost 16% of sales (compared with 13% in the first half of 2022/2023). This increase is all the more remarkable given that it includes a €1.6m loss at CATANA GROUP PORTUGAL linked to the launch costs of the new "YOT" motorboat project.

On the strength of this increase in operating margins, net profit "Group share" rose by 54% to €13.5m, or 12.7% of sales, compared with 9.1% in the first half of 22/23.

The Group, based in Canet en Roussillon, has solid fundamentals: Catana Group's cash position stood at €66.5m (compared with €63.1m at 31 August) despite a one-off €14.5m deterioration in working capital due to the more marked seasonal nature of deliveries this year. This working capital is reflected in higher inventories of new boats, all of which have been sold but are awaiting delivery and invoicing in the spring.

It should be noted that the French group specialising in catamarans invested €10.6m in the first half of the year, mainly in the construction of its new motor catamaran factory in Portugal (€6.2m), but also in the modernisation of its joinery department at Rivesaltes (€1.3m) and in the development of new products.

In terms of financial debt, the Group took out €13.4m in new loans to finance the new motorboat factory in Aveiro (Portugal). In addition, the Group has just obtained a 25-year renewal of the port concession for its services subsidiary Port Pin Rolland in Saint-Mandrier (83).

Including these two new items, the Catana Group's financial debt came to €47.9m, while shareholders' equity (Group share) stood at €82.2m.

What about the months ahead?

The Group explains that it is anticipating a market that has entered a phase of regulation, characterised by a lower flow of orders over the last few months and, above all, much more inertia in prospective customers' decision-making. While uncertainty over interest rates and the geopolitical context are factors that in themselves justify a wait-and-see attitude, the rise in boat prices over the past 3 years (30-80% for some catamaran brands), under pressure from the rise in raw materials prices, seems to have become a 'seizing up' factor for the market.

This analysis of the situation leads Catana Group to believe that this wait-and-see trend can only be reversed by means of real commercial aggressiveness and a reasonable readjustment of prices. With a view to tackling the problem at source, the Group has entered into energetic negotiations with all its supplier partners, with a view to benefiting from the falls in world raw material prices that have been seen for several months now.

The Group is also taking advantage of the lull in the market to consolidate its internal organisations, which have been badly battered by years of hypergrowth in a context of worsening shortages. Despite the current high levels of profitability, Catana Group has identified a number of performance levers acting on both the company's productivity and its cost structure.

Focusing on cash protection, the Group intends to maintain this situation in its factories, with a target of no unsold stock.  

In addition, the Group's management has entered into discussions with local authorities with a view to increasing the Group's industrial capacity at Canet-en-Roussillon. These discussions are part of the Group's plan to redeploy the Catana 'blue water cruising' brand, and to create a new division dedicated to the manufacture of large Bali models (over 65 feet).

For the Group headed by Aurélien Poncin, these two initiatives will be key growth drivers for the Sailing division over the long term. "These good interim results once again demonstrate the solidity of the Group and its business model. Even if the market situation is less favourable today, we have both one of the best products on the market with the BALI range and a strong capacity to adapt, demonstrating that agility is our trademark. These solid foundations put us in the best possible position to calmly implement our multi-axis development plan, which will drive long-term growth."