[SINGAPORE] Grand Banks Yachts posted a 42.4 per cent drop in net profit to S$2.3 million for the third quarter ended Mar 31, from about S$4 million in the corresponding quarter in the year before.
This decline came mainly from its having sold more lower-margin trade-in boats, along with higher costs from product enhancements, the mainboard-listed luxury recreational motor yacht manufacturer said in a regulatory filing on Monday (May 19).
The company’s net profit for the first nine months of FY2025 dropped 9.7 per cent to $9.9 million, from S$10.9 million in the same period last year.
Revenue for the third quarter rose 37.8 per cent to S$40.1 million, from S$29.1 million the year before. For the first nine months of FY2025, revenue grew by 14 per cent to S$107.3 million, up from S$94.1 million recorded in the same period last year. Grand Banks attributed this growth to an increase in boat-building activity.
Grand Banks secured 11 new boat orders in the latest quarter, comprising seven build-to-order units, two trade-ins, one pre-owned vessel, and one stock boat.
This brings total orders for the first nine months of FY2025 to 26. Its net order book stood at S$119.5 million as at end-March, up 8.8 per cent from S$109.8 million at end-December 2024.
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Grand Banks said its balance sheet remains healthy, with cash on hand rising 24.2 per cent to S$51.4 million as at Mar 31, up from S$41.4 million at end-December last year.
Looking ahead, Grand Banks said it is monitoring the implications of the reciprocal tariffs from the US, and its potential impact on business.
Notwithstanding the current geopolitical and economic challenges, Basil Chan, chairman of Grand Banks, said the company continues to implement growth initiatives and invest for the longer term; he expressed confidence that it can deliver long-term shareholder value.
For instance, to capitalise on the growing demand for its boats, Grand Banks unveiled a new composite manufacturing facility in Pasir Gudang in Johor in March to support the construction of larger, sleeker, and more energy-efficient yachts, and to cut waiting time for its customers.
Grand Banks has also proposed acquiring two properties in Newport, Rhode Island – a premier US boating destination and its largest market – to enhance customer experience and bolster the company’s sales and after-sales capabilities in the US’ north-east.
An extraordinary general meeting will be held in June to seek shareholders’ approval for these acquisitions.
Grand Banks’ chief executive officer Mark Richards added that these investments “will lay the groundwork to meet future demand”.
Shares of Grand Banks closed 6.5 per cent or S$0.035 lower at S$0.50 on Monday.
