Small boat sales for Nimbus saw softening demand in the third quarter of 2023, however the boatbuilder saw stable sales of large boats.
Last year, small boats accounted for 19% of the order backlog compared with only 4.7% currently.
During the quarter, net sales rose by 18%, however, excluding acquisitions, sales decreased 14% year-on-year.
The organic sales decline was strongly linked to the weak small boat market, primarily in the Nordics, but in his latest financial report, Jan-Erik Lindström president and CEO, points out that the comparative quarter of 2022 was positively impacted by deliveries that had been shifted from the second quarter due to disruptions in the supply chain.
Excluding this effect, organic sales for the quarter remained largely unchanged compared with 2022.
Excluding EdgeWater, sales of large boats increased by 19% year-on-year.
The Swedish krona has weakened by about 15% compared to other key currencies which has had an impact on the boatbuilder’s profitability as a large proportion of boats are manufactured outside Sweden.
Profitability was also impacted by reduced sales for dealers, linked to weakening sales in the Nordic market.
“We are continuing to pursue our strategy, which entails a greater focus on premium boats and includes, among other measures, the transfer of production capacity to large boats,” said Jan-Erik.
“Initially, we had higher costs in the process, but we expect the positive effects to be gradually felt during the following quarters.”
The boatbuilder also plans to continue to outsource production to allow for greater flexibility.
The geographic distribution of the order book has also changed and the share from North America rose sharply to MSEK 550 (182), corresponding to 58% of total orders.
The figure includes EdgeWater Power Boats at MSEK 107.
The total order book decreased by 10%, but still amounted to MSEK 946 (1,051).
“The fact that our large boat sales increased 19% in the prevailing economic climate, even excluding EdgeWater, is a sign of strength,” concluded Jan-Erik.
“For us, this is about positioning ourselves in such a way that we can continue to grow regardless of how the overall market develops.”