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Sanlorenzo SpA (SNLRF) Q4 2024 Earnings Call Highlights: Navigating Growth and Sustainability ...

In This Article:

  • Revenue Growth: 17.6% increase over the last three years.

  • EBITDA Margin Growth: 3.1% increase.

  • Net Profit Growth: 40% growth, with a 2.7% increase in net profit margin.

  • Cash Generation: EUR109 million, including EUR31 million in dividends.

  • Guidance for 2023 Revenue: Expected between EUR810 million and EUR830 million, representing an 11% growth.

  • Guidance for 2023 EBITDA: Expected between EUR150 million and EUR155 million.

  • Net Cash Position for 2023: Expected between EUR120 million and EUR128 million.

  • Backlog: EUR1.1 billion as of December, with EUR617 million for 2023 and EUR450 million for 2024 and beyond.

  • Projected EBITDA Margin for 2025: Expected to be equal to or above 19.5%.

  • Projected Net Profit for 2023: Expected between EUR84 million and EUR86 million.

  • CapEx for 2023-2025: Around EUR50 million.

  • Production Capacity Expansion: Planned increase to 125,000 square meters by 2025, with further expansion to 145,000 square meters.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Sanlorenzo SpA (SNLRF) reported a strong financial performance with a 17.6% revenue growth and a 3.1% increase in EBITDA margin over the past three years.

  • The company has a robust backlog of EUR1.1 billion, providing strong visibility and covering 75% of the 2023 guidance.

  • Sanlorenzo SpA (SNLRF) is pioneering sustainability in the yachting industry with plans to launch a 50-meter yacht using methanol fuel cells and a 20-meter zero-emission yacht.

  • The company is expanding its production capacity by 25% to support future growth and plans further expansion by 2025.

  • Sanlorenzo SpA (SNLRF) is enhancing its direct distribution in key markets, including Asia Pacific, to capitalize on high growth potential regions.

Negative Points

  • The company acknowledges the cyclical nature of the yachting industry, which could impact future financial performance.

  • Sanlorenzo SpA (SNLRF) faces challenges in maintaining high profitability margins, with a cautious outlook on achieving the 19.5% EBITDA margin target.

  • The geopolitical situation and economic uncertainties, such as potential bank failures, pose risks to the company's growth projections.

  • The expansion into refitting activities is still in the planning stage and considered an upside, indicating potential delays or challenges in execution.

  • The company's ambitious sustainability goals require significant investment and technological advancements, which may present execution risks.