Phiadvisor's Enter Long Signal on Beneteau (BEN-FR)
Beneteau is a €855 Mn market cap company and a world leader in leisure crafts. The group also produces recreational mobile homes. Revenues are mainly derived from boats (86% of sales) including sail boats (No. 1 worldwide) and motor boats (Bénéteau, Jeanneau and Prestige brands), yachts (CNB, Prestige Yachts, Monte Carlo Yachts), catamarans (Lagoon), fishing boats (Bénéteau Pêche) and service boats. The second segment consists on recreational mobile homes (14% of sales) including O'Hara, IRM and Coco Sweet brands. The group also offers mobile home rentals.
The exit from the lockdown enabled the Group to achieve better revenues than forecast in Q3 for both the Boat business and Housing, thanks in particular to a sustained level of deliveries during the summer period and lower-than-expected order deferrals.
The company has a strong balance sheet that should allow it to wether the crisis, while orders are expected to recover swiftly from H2-2021, along the cycle. The « Let’s go beyond » strategic plan is set to rationalize the product offering around 8 strong brands, a focus on increasingly specialized production sites for each size and type of boat, and accelerating development cycles.
Short term catalyst: world cylclical recovery, strategic plan.
This signal looks mainly company specific.