Grand Banks Yachts has reported a net profit after tax (NPAT) of $2.8 million for the 1QFY2024 ended Sept 30, 158% higher than its NPAT of $1.1 million in the corresponding period the year before.
The Mainboard-listed boat builder’s profit before tax (PBT) also surged by 330.9% y-o-y to $4.7 million during the 1QFY2024.
The higher bottom line was attributable to the higher revenue for the three-month period as the group ramped up boat-building activities at its manufacturing yard in Pasir Gudang, Malaysia.
1QFY2024 revenue rose by 38.5% y-o-y to $31.0 million.
Gross profit for the period rose by 68.9% y-o-y to $10.1 million as the group improved its operational efficiency and switched up its workflow and scheduling. The changes led to higher man-hours to meet higher orders. Accordingly, the company’s gross profit margin (GPM) grew by 5.9 percentage points y-o-y to 32.6%
Total operating expenses rose by 9.4% y-o-y to $5.2 million due to higher expenses for marketing, event sponsorships and boat shows.
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In the 1QFY2024, Grand Banks saw five new built-to-order boat sales. Its net order book as at Sept 30 stood at $148.8 million, 6.6% lower than $159.4 million as at June 30.
In its business update dated Oct 24, the group says it maintains a “cautiously optimistic” outlook due to the rising global uncertainty and softer short-term demand, although it notes that it has seen strong attendance at recent boat shows.
That said, the group adds that it “will strive to maintain a healthy sales volume and expedite its manufacturing activities to shorten delivery times”.
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“The strong performance in our first quarter of FY2024 is a heartening sign for the financial year ahead. We remain dedicated to delivering quality luxury yachts while seeking to improve efficiency and shorten delivery times. I am confident our strong order book and improved operations will provide a strong buffer against short-term market challenges,” says Heine Askaer-Jensen, chairman of Grand Banks.
“The strong quarter reflects our efforts to streamline workflows and man-hours, which accelerated boat-building processes and revenue recognition. Combined with the planned expansion of our Pasir Gudang yard, we expect production capacity to continue increasing, with improved capabilities which will allow us to build bigger, sleeker, and more energy-efficient boats to meet customer demand,” adds Mark Richards, CEO of Grand Banks.
Shares in Grand Banks closed 0.5 cents higher or 1.67% up at 30.5 cents on Oct 24.
