SGX Mainboard-listed Grand Bank Yachts (GBY) has reported a y-o-y increase in its 3Q FY2025 revenue but earnings in the same period, no thanks to lower margins, dropped 42.8% y-o-y.
The group also saw earnings decline on the back of a lower margin sales mix and higher costs associated with product enhancements.
For 3Q FY2025, seven build-to-order boats, two trade-in boats, one pre-owned boat and one stock boat were sold, which lifts the number of boats sold by GBY for 9M FY2025 to 26 boats.
This helped bring 3QFY2025 revenue to $40.1 million from $29.1 million in 3Q FY2024.
However, due to a higher proportion of sales of lower-margin trade-in boats along with higher costs from product enhancements as mentioned above, GBY’s margins dropped to 24.8% from 41.9%, leading to earnings of $2.3 million from $3.9 million a year ago.
GBY remains confident about its longer-term outlook as it remains well-positioned for future growth.
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Along with the unveiling of its new composite manufacturing facility in Pasir Gudang, Johor, the group also announced back in March its intention to acquire two properties in Newport, Rhode Island – a premier boating destination in the United States of America, its largest market – subject to shareholder approval in June.
The acquisition will help enhance customer experience and strengthen its sales and after-sales capabilities in the Northeastern side of the US.
“Notwithstanding current geo-political and economic challenges, the group continues to implement growth initiatives and invest for the longer term,” says GBY chairman Basil Chan.
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“The expansion of our Malaysian facility and proposed acquisition of the Newport properties will strengthen our global positioning and branding. Despite global uncertainty, the Group remains confident that it can deliver long-term shareholder value,” he adds.
Strong sales this quarter also brought GBY’s net order book value up by 8.8% to $119.5 million as of Mar 31 compared to $109.8 million as of Dec 31, 2024.
“The higher net order book demonstrates the strong customer confidence in our ability to deliver premium craftsmanship, customer service, and innovative products. We continue to invest in new product development at our state-of-the-art manufacturing facilities, whilst strengthening our market presence in the US,” says Mark Richards, CEO of GBY.
