2024 saw improved results for Princess Yachts, with revenue of £378.1 million compared to £310.5 million in 2023.
Operating loss was £8.1m (2023: £61.5m) with adjusted EBITDA profit standing at £13.4m (2023: loss of {24.5m) and adjusted EBITDA margin of 3.5% (2023: (7.9%)).
The loss after tax was £17m (2023: £65.3m).
However the luxury yacht builder says that despite the improvement in financial performance in 2024, a stretched supply chain, slower than expected commercial recovery and the lead time associated with the implementation of ongoing strategic initiatives, has had an impact.
Despite challenging commercial conditions, retail sales regained consistent growth in the second half of 2024 and gross profit per boat completed gradually improved throughout 2024.
The strategy to continue to invest in new products remains key to the longer-term plans.
Princess Yachts
The financial improvement has been put down to the effective implementation of a number of business improvement initiatives through the year and improved efficiency of the supply chain.
Improvement initiatives include the reduction of corporate layers, instead giving greater authority to site leadership and the implemention of a new operating plan with operational and financial targets.
“Key areas of opportunity to reduce costs and improve operational efficiency that were identified in the operative plan have been implemented in 2024 or continue into 2025,” stated the directors strategic report.
Turnaround plan
“New opportunities have continued to be evaluated, identified and acted upon in 2024.”
In addition, the company has reduced the number of its both support and production staff.
Alongside the turnaround plan, Princess has continued with its product development, with two new boats launched in 2024 and a rolling five-year programme incorporating the launch of three new models per year.
Total expenditure on product development in 2024 was £10.9m (2023: £12.6m).
New product investment
“The strategy to continue to invest in new products remains key to the longer-term plans,” said the directors report.
“New product investment alongside a limited global distributor stock position at year end gives Princess a strong base from which to continue to deliver the operational turnaround and significantly increase profitability.”
Looking to the future, Princess says trading in the first half of 2025 continues to track positively, with accounts reflecting greater profitability than 2024 and also ahead of the boatbuilder’s annual operating plan.
