Bénéteau (BEN) H1 2024 earnings summary

Executive summary

• H1 2024 financial performance was resilient despite a deteriorated market, with significant adaptation measures and a value-driven growth strategy focused on premiumization and innovation.

• Revenue for H1 2024 was €556.6m, down 31.5% year-over-year, mainly due to dealer stock reductions and weak demand for small power units, especially in the US.

• Net income attributable to the group was €49.4m, a 57.8% decrease, reflecting lower activity in the Boat division.

• The Housing/Habitat division is classified as a discontinued operation pending regulatory approval for its sale.

Financial highlights

• Group revenues before IFRS 5 were €766m, down 25.5% year-over-year; H1 2024 revenues: €556.6m, down 31.5%; net income (group share): €49.4m, down 57.8%.

• EBITDA before IFRS 5 fell 42% to €111.2m; Group EBITDA was €77.7m, down 50.8%; EBITDA margin declined to 14%.

• Free cash flow was negative at -€51.2m; net cash position at June 30, 2024, was €136.6m.

• Shareholders' equity stood at €845m at end-June 2024.

Outlook and guidance

• 2024 Boat division revenue guidance confirmed at around €1bn; operating margin revised to 4%-6% (6%-8% excluding US brands' operating loss).

• Dealer stock reduction of €100m–€150m and internal inventory reduction of €20m–€50m targeted for the year.

• Sale of the Housing/Habitat division pending regulatory approval in H2 2024.

• Strategic priorities include cost adaptation, value growth via new model launches, and innovation to reduce CO2 emissions by 30% by 2030.