Wed, Apr 8, 2015

Ferretti embarks on $54m investment drive

Italian shipbuilder Ferretti is pressing ahead with a $54 million investment plan to further grow and develop its key brands, with the target of breaking even by the end of 2017.

The news was revealed by Chief Executive Officer Alberto Galassi during the inauguration of the group’s new headquarters in Milan, last month.

During the inauguration, Galassi revealed Ferretti’s strategy for growth and expansion over the next three years, on the heels of an increase in capital worth €80 million, fully subscribed and paid up by majority shareholder Weichai Group, with the aim of consolidating and underpinning its net worth and supporting a relaunch that includes a series of targeted actions to implement new strategies and directions.

The group is focusing on the continued development of the core brands in its portfolio - particularly Riva, Ferretti Yachts, Pershing and Custom Line - involving investments in product development and research worth over €50 million ($54.3 million) over the three-year period spanning 2015-2017, that will fund the launch of 27 new models. 

The new Riva superyacht division is part of this new direction, endorsing the decision by the historic and iconic brand to enter the 50-m-plus super yacht segment.

Galassi commented: “On such an important day, when we are unveiling our new HQ in Italy’s capital of design and innovation, we have plenty of reasons to feel proud and satisfied: we are continuing our efforts to relaunch the group, which is now reclaiming its position as the leader in the yachting industry. We are investing over €50 million in 27 new models; we are launching the Riva superyacht division, which has already won an order for its first 50-m craft; we are presenting a group that has already slashed its losses by half and reduced its bank borrowings to an all-time low and will continue to benefit from the full support of Weichai, after its decision to continue investing in the industrial excellence of our country by subscribing to a substantial increase in share capital.”

Ferretti saw its losses more than halved in 2014 compared to 2013 despite a particularly challenging market situation, resulting in a net loss of circa €40 million, with bank borrowing at an all-time low in the history of the group, amounting to just €34 million at the end of 2014.

The launch of new models and the efforts to develop markets in the years to come, are signs of the group’s hopes and intentions to break even and achieve sales worth €542 million ($589 million) by the end of 2017, compared to estimated sales of €373 million ($405.6 million) by the end of 2015 and €392 million ($426.3 million) in 2016. 

The group expects to see steady growth in its margins over the next three years, and aims to achieve a positive EBITDA of €16 million ($17.4 million) in 2016, expanding to €44 million ($47.86 million) in 2017.

Ferretti is the world leader in the design, construction and sale of luxury motor yachts, with a unique portfolio of prestigious and exclusive brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN and Custom Line.

Under the guidance of President Tan Xuguang and CEO Galassi, Ferretti operates out of modern shipyards located across Italy, combining industrial production efficiency with an attention to detail that is central to ‘Made in Italy’ craftsmanship, guaranteed by Italy’s centuries-old legacy in the maritime world.

Founded in 1968, the group also has operations in the US with its subsidiary Ferretti Group America, and in Asia, with its subsidiary Ferretti Group Asia Pacific, based in Hong Kong.

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