The Bénéteau Group is revising its growth forecasts downwards

Bénéteau Shipyard

The Bénéteau Group has published its growth forecasts for 2018-2019. The slowdown in the yachting market, particularly for motor boats, and its French leader is worrying investors.

Weaker growth in 2018-2019

When it published its outlook for 2018-2019 on 6 February 2019, the Bénéteau Group announced a slowdown in its growth for the next financial year. Overall Group revenue is expected to increase by +3% to +5% on a reported basis and +2% to +4% at constant currency. The growth forecast for the yacht business is for an increase of +4% to +6% on a reported basis, while it was +6.7% in 2017-2018.

Global context of difficult yachting

The Bénéteau Group justifies the caution of its forecasts by a difficult global context in the boating sector, recalling that it expects results to be above the market average, the increase in value of which it estimates at +2%, compared with +3% to +4% in 2018.

Sailing boats and multihulls save motor boats

The sailing segment continued to grow with a +12.3% increase in the order book, while the motor segment recorded a 3.2% decline, mainly due to the market slowdown in the inboard segment. The Monte Carlo Yachts subsidiary's 60-foot motor units are particularly affected, while outboard motor boats are holding up well.

The tariffs introduced since July 2018 by the EU and Canada on motorboats manufactured in the United States penalise international sales and intensify competition on the US domestic market.

Market disappointment

Investors showed their disappointment at the opening of the markets on February 7. The Bénéteau Group's share price fell by more than 15% at midday.

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