(News Bulletin 247) – The catamaran specialist has published the results for its 2022-2023 financial year, marked by a decline in its profitability, itself penalized by logistical disruptions and inflation. The group also notes a wait-and-see attitude in terms of demand.

Full sail, Catana has, in the space of two financial years, doubled its turnover. Like other groups specializing in boating (Beneteau) and leisure vehicles (Hunyvers, Trigano), the catamaran manufacturer has benefited from strong demand for its products which allow escape into a health bubble, the pandemic having strengthened the attractiveness of its offers.

The group’s accounts for the 2022-2023 financial year, closed at the end of August and published Tuesday evening, clearly illustrate the strength of demand. Turnover jumped 39% to 207.3 million euros, growth all the more significant as it follows an increase of 46% over the previous financial year. The company has “taken full advantage of the improvement in post-Covid demand, also showing great qualities of industrial agility”, argues the company.

Operating profit increased from 23.8 million euros to 25.6 million euros, an increase less rapid than that of turnover, which bears the marks of degraded industrial conditions.

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Parts shortages

Shortages of parts, particularly engines, and labor during the year, as well as general inflation, had a significant impact on the group’s productivity, leading to delivery delays (increased costs). ‘almost’ finished products in the factories, which led to invoicing delays and a significant immobilization of cash)”, deciphers TP ICAP Midcap in a note.

“All these factors had a significant impact on the group’s operating margin, which decreased to 12.4% (compared to 15.8% in 2022). The latter was also influenced by the integration of Composite Solutions (a company Portuguese motorboat company in which Catana took a majority stake in February for 2 million euros) which, after the first industrial costs linked to the development of the YOT range of motorboats and some balance sheet adjustments, shows an operational loss of 700,000 euros “, continues the design office.

Net profit increased from 15.9 million euros to 19.3 million euros. Cash flow was penalized by increases in stocks of finished or semi-finished products which increased the working capital requirement (WCR). Ultimately, the annual change in cash flow is negative at 4 million euros. However, the group continues to have a high net cash position (gross cash minus financial debts), of 37.7 million euros at the end of August compared to 42.8 million euros a year earlier.

An undervalued stock?

Concerning its outlook, Catana is somewhat cautious, citing a “business climate which has gradually become more complex”.

“The continued rise in the selling price of boats over the last two years, the increase in interest rates, more difficult access to credit, and economic and geopolitical contexts with uncertain outcomes have caused a lot of wait-and-see attitude and slowed down this euphoric demand”, develops the company.

“If order intake in the fall remained correct, uncertainty is required. It requires great caution regarding commercial activity in 2024 and its possible impacts on the pace of business in subsequent years,” she continues. .

“In our opinion, despite the pressure on the operating margin, the group’s profitability remains solid. We believe that the group will be able to return to 2022 operating margin levels by 2025, by optimizing its supply chains, its overall production and thanks to the launch of the YOT brand, of which a second model will be launched during the current financial year”, nevertheless believes TP ICAP Midcap.

The research office confirmed its purchase opinion on the value, with a price target adjusted to 9.1 euros compared to 9.7 euros previously, judging the title “undervalued” in particular with regard to its “portfolio of diversified brands.

The market is seizing up. Around 10:10 a.m., Catana shares fell 10.5% to 5.87 euros this Wednesday.