The Italian Sea Group 1H24 Analysis
Strong growth of a company destined to achieve great things
Analysis of the 1H24 results of Italian Sea Group, a company specialized in the manufacturing of luxury yachts, which went public in June 2021 and currently trades with a market cap of €450MM. You can find the investment thesis and financial model of this company, which we have followed since its IPO, on our website (as well as for the rest of the industry, for which we recently published an important update).
Good results from TISG, which continues to grow, and confirmation of its guidance. A slowdown in the industry regarding order intake for new orders (seasonality aside) and a few things we should keep monitoring to weight if the situation worsens in the future.
We are also sharing our downloadable financial model, our opinion on the current situation of TISG / the upcoming quarters, and our portfolio management.
1H24 results in line with estimates, showing revenue growth of +14.2% YoY and EBITDA growth of +19% YoY.
Revenues grew to €189.4M, slightly below market expectations (+15%), driven by strong performance in the Americas market (+170.7% YoY to €87MM) and Megayacht segment
Shipbuilding division revenues increased by +20.1% YoY to €167M, while Refit revenues remained flat at €22.6M (expected to pick up in H2 due to seasonality & huge increase of orderbook).
EBITDA margin surpassed 17% (17.1%), driven by product/service mix improvements, cost control, and the internalisation of high-value production.
Net profit more than doubled (+113% YoY) to €29M, supported by €17M in non-recurring income (Viareggio Asset disposal).
Net debt increased to €33.6M but it is expected to be reduced in 2H24
Outlook for FY 2024 and FY 2025 confirmed, with expectations of high-end EBITDA margin (17-17.5%) due to product mix and pricing optimization.
The upcoming Monaco Yacht Show could drive order intake in the short term.
