Ferretti Group has reported strong Q3 results, with improved margins and a "sustained growth of the order backlog", according to Ferretti Group CEO Alberto Galassi. Consolidated net revenues reached €856.4 million, which is an increase of 9.8 per cent when compared to the same period in 2022.
The Group attributed its growth to three main factors: commercial, i.e. longer waiting lists equating to higher pricing powers; strategic positioning, including a larger presence in the most profitable segment, such as made-to-measure; and industrial considerations, such as the economy of scale in purchasing and more efficient absorption of fixed costs.
Thanks to strong worldwide demand, the order backlog was at €1,471.7 million in September 2023, representing an increase of approximately 6.6 per cent when compared to the September 2022 figures of €1,380.3 million. The order intake, meanwhile, was €875 million in the first nine months of 2023.
Breaking down the production type, the shipyard's made-to-measure yachts dominated the order backlog, making up 37.8 per cent of the total order backlog and reaching €556 million. Between the same period in 2022 and 2023, composite yachts saw a slight dip of 0.3 per cent in the order backlog, accounting for €434.2 million this year. Superyachts and the yard's other businesses also saw an increase.
Owing to the strong order backlog built in 2022, the Group’s overall revenue increased by approximately 9.8 per cent from approximately €779.8 million in Q3 2022 to approximately €856.4 million in 2023. Superyachts saw the biggest growth in revenue with a huge 33.4 per cent increase from €72.5 million in 2022 to €96.7 million in 2023.
The Group also revealed an adjusted EBITDA of €124.8 million, representing an increase of 17.7 per cent, and a margin of 15 per cent, which represents an increase of 100bps from the previous year.
Comparing the same nine-month period in 2022 and 2023, the Group’s profit showcased an uplift of approximately 30.6 per cent from approximately €47.4 million to approximately €61.9 million. The margin of 7.4 per cent represents an increase of 90 basis points.
Despite a slowdown in growth in 2022 of the VHNWI and UHNWI population, the global luxury yacht industry has continued to grow solidly throughout 2022 and 2023. Even with geopolitical uncertainties, Ferretti Group has continued to deliver outstanding performance and has reinforced its strategic position not only in high-value segments but also in new emerging and high-growth segments.
Looking ahead, the Group aims to build on the expected growth trends of the global luxury yacht industry and strengthen its overall resilience with a four-pillar plan. It will enhance and expand its product offering, consolidating its market leadership position in both composite and made-to-measure segments.
The Group is looking to invest in innovation, technologies, and products to provide a more environmentally responsible yachting experience. It also aims to expand on its made-to-measure offering into larger alloy yachts, developing new alloy-hulled superyacht models under its iconic Riva, Wally, Pershing, and Custom Line brands.
Galassi said: "The huge success achieved by Ferretti Group at this season’s boat shows in the Mediterranean and Fort Lauderdale again demonstrates that our ongoing efforts are being rewarded by excellent sales results. This is one of the reasons for our focus on the Group’s shipyards, and on Ravenna in particular, in order to expand Ferretti Yachts’ new sustainable “INFYNITO” range and to increase production capacity, reacting promptly to market expectations.”
Another focus will be broadening its yacht brokerage, chartering and management services – including after-sales and refitting services. It is looking into extending its brand extension and licensing activities, as well as the security and patrolling market.
Finally, the Group will keep investing in the internalisation of high-value-added activities to support its future growth and product portfolio expansion.Read More/Cannes Yachting Festival: Ferretti Group reveals 2023-2025 product strategy