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Nimbus Group: increased demand for premium boats, drop in smaller craft sales

Nimbus Group has seen a decline in demand for smaller boats and external brands of 63%, with sales of premium boats increasing by 25%.

The figures are released in the Group’s latest interim report which show that overall, the Group’s net sales increased 13% in the first quarter of 2024.

In the last 12 months, sales were up 10% year-on-year, although growth was down by 5.6%.

During the first quarter of 2024, the Group carried out a planned, temporary production stop in EdgeWater to reduce dealership inventory levels.

Production has now re-started with plans to gradually increase manufacture over the next few months.

In addition to the production stop, productivity enhancing measures were introduced which that, together with the production stop, affected Nimbus Group EBITA negatively by MSEK -23 in the quarter.

Small boats

In the Group’s latest interim report, Jan-Erik Lindström, president and CEO, says sales of premium boats are still performing well but there is continued low demand for small boats.

The Group has an order book worth MSEK 789, an increase of 12% compared with the fourth quarter of 2023 (759) but a decrease of 20% compared to the previous year.

Overall orders are up 11% compared with the first quarter of 2023, with premium boats consisting of 88%, up from 83% year-on-year.

The order book in North America increased by 66%, amounting to 51% of the total order book.

European sales have decreased by 10% year-on-year and Nordic sales decreased by 37%.

The Group’s cash flow suffered from the cost of transporting boats from Europe to North America. To reduce these costs, production of boats under the Nimbus brand was started at its facility in North America.

More efficient production has also been implemented with an improved production layout at the EdgeWater facility.

The Group is also reviewing the EdgeWater brands with a view to optimising them.

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