Grand Banks Yachts, the Mainboard-listed builder of the prestigious Grand Banks, Eastbay and Palm Beach boats, has reported a net profit after tax (NPAT) of $1.1 million for the 1QFY2023 ended Sept 30.
In contrast, the group reported a net loss of $4.2 million in the corresponding period the year before.
According to the group, the reversal into profitability is mainly attributed to the group’s revenue, which surged 94.3% y-o-y to $22.4 million.
The increase in revenue was due to the recovery of the group’s business after nearly 2.5 months of Covid-19-related disruptions at its yard in Pasir Gudang, Malaysia, between July and September 2021.
Accordingly, the group’s gross profit for the 1QFY2022 stood at $6.0 million, reversing from its $0.3 million loss.
In tandem with the higher marketing expenses and boat shows upon the easing of travel restrictions, the group’s total operating expenses increased by 17.9% to $4.8 million.
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During the quarter, the group recorded seven new built-to-order boat sales as demand increased following the easing of travel restrictions. “The sales also underscore strong market acceptance of new, sleeker designs which are more fuel-efficient,” says Grand Banks Yachts in its Oct 25 statement.
On this, the group intends to increase its labour force at its Pasir Gudang yard, in order to speed up boat construction activities and shorten wait times for customers.
As at Sept 30, the group’s net order book reached an all-time high of $191.8 million.
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“We have delivered an encouraging set of results this quarter, and expect recovery to remain strong in the coming months. The group is closely monitoring consumer sentiment amid increasing economic uncertainty, and remain optimistic even amid headwinds such as higher costs for raw materials and transportation of yachts,” says Heine Askaer-Jensen, chairman of Grand Banks.
“The yachting market has continued to be resilient even though travel restrictions have eased. Attendance at physical boat shows is strong. Our order book underscores the demand for our brands, and cushions against economic headwinds. We plan to expedite boat construction by increasing headcount and investing in automation to meet orders and increase revenue recognition,” adds Mark Richards, CEO of Grand Banks.
Shares in Grand Banks closed 3 cents lower or 10% down at 27 cents on Oct 25.
