MarineMax Headquarters

MarineMax, which bills itself as the world’s largest recreational boat, yacht and superyacht services company, has announced its results for its fiscal third quarter ended 30 June 2024. It says its revenue is up five per cent (year-over-year) and its gross margin of 32 per cent highlights its successful strategy of expansion into higher-margin businesses.

“Despite persistent retail headwinds in the third quarter, our team executed well, delivering five per cent top-line growth,” says CEO and president Brett McGill. “Our solid third quarter performance in this challenging operating environment underscores the importance of our value-creation strategy, which focuses on expanding our high-margin, less cyclical revenue streams.

“This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile—now consistently exceeding 30 per cent —and enhanced our cash flow generation and balance sheet resilience. These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry-wide. By strategically realigning our business, we’ve better positioned ourselves to weather market fluctuations and capitalise on emerging opportunities across our diverse portfolio.”

The recent formation of the new SuperYacht Division (SYD) exemplifies the strategy to generate increasing operating and commercial synergies across the portfolio.

“SYD integrates the operations of Fraser Yachts, Northrop & Johnson, Fairport Yacht Management, SuperYacht Management and Atalanta Golden Yachts (AGY), streamlining the back-office functions of these businesses into a unified entity,” says McGill. “Our expansion into superyacht services began many years ago as our existing Azimut, Galeon, and Ocean Alexander customers, and others from our retail dealership operations, migrated to increasingly larger yachts. The complexity of these vessels demanded specialised services, which our SYD companies are exceptionally well-positioned to provide.” More information about the services these companies offer is available via MarineMax’s website.

“As part of our long-term operational improvement plan, we initiated strategic cost-cutting actions to better align our expense structure with the current operating environment and improve operating leverage. During the fourth quarter and into fiscal 2025, we expect to see increasing cost savings from these initiatives, which will further improve our cash flows.”

MarineMax fiscal 2024 third quarter results

Revenue in the fiscal 2024 third quarter increased five per cent to $757.7 million from $721.8 million in the comparable period last year. The top-line growth was primarily driven by an increase in boat sales. On a comparable same-store basis, revenue increased four per cent, reflecting higher new and used boat revenue as well as other areas of the company’s retail operations segment, which includes marina, parts, finance and insurance, Super Yachts Group and Charter.

Gross profit decreased one per cent to $242.1 million from $243.8 million in the prior-year period. Gross profit margin of 32.0 per cent decreased 180 basis points from 33.8 per cent in the comparable period last year, reflecting a higher level of promotional activity to drive boat sales in the face of challenging retail operating conditions.

Earlier this year, McGill said ‘softness’ in the market had led to gross profit decline for MarineMax and in July IGY Marinas made Marinemax shareholders an acquisition offer.

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