Ferretti Group backlog grows to €1.6bn

Italian luxury yacht manufacturer Ferretti Group announced first quarter financial results reporting an 11.7% year-over-year growth in revenues to €313m.

Segment-wise breakdown showed composite yachts made up for 46.3% of the revenue, followed by made-to-measure yachts at 38.4%, superyachts 11.5% and other business contributing 3.8%.

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However, geographic breakdown showed the company’s revenue from Americas (AMAS) region declined from 29.3% in the first quarter of last year to 23.4% in Q1 2024.

“We open the new year reporting extremely positive results across all key economic and financial indicators. Q1 2024 testifies to the effectiveness of the group’s strategy, consolidating and improving on Ferretti Group’s already excellent performance in 2023,” said Alberto Galassi, CEO, Ferretti Group.

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The company’s order intake during the quarter was €266.6m, slightly down compared to same period last year, mainly owing to presidential elections and the high interest rates affecting the demand in AMAS region, particularly the US.

At the end of the quarter, the order backlog stood at €1.6bn, an increase of 10.2%YoY.

The company’s adjusted EBITDA in Q1 2024 stood at €48.2m, an increase of about 20.5%YoY. The EBIDTA margin increased to 15.4% during the period under review, witnessing an increase of 110bps.

“This excellent performance confirms the strength of the commercial and industrial strategy that has seen the group maintain strong negotiating power over prices, consolidate the most profitable made-to-measure segment, and absorb fixed costs more efficiently, in addition to greater procurement economies of scale capacity,” commented the company on improvement in margins.

On the bottom-line, the company’s gross profit improved 19.4%YoY to €22.2m.