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Double-figure profit for Ferretti Group in 2017

Business
Written by
Justin Ratcliffe

2016 was the year that marked the first net profit for Ferretti Group since 2008, but 2017 saw it break into double figures with a PAT (Profit After Tax) of €24 million. This growth of 71% on the previous year represents a consolidated production value equal to €623 million, up 10.8% on 2016. The Group’s total assets stand at €971 million.

Alberto Galassi at the Ferretti Group Press Conference in MilanPhoto: Justin Ratcliffe
The news was announced by Alberto Galassi, Ferretti Group CEO (read our recent interview here), in Milan at Garage Italia, the auto- and Riva-themed venue founded by Lapo Elkann, grandson of Gianni Agnelli. Also present at the event was Piero Ferrari, son of Enzo Ferrari, vice chairman of the Ferrari automotive company, and Galassi’s father-in-law. 

A member of the Ferretti Board of Directors, Piero Ferrari acquired a 13.2% stake in the Group in 2016 and presides over the Product Development Committee responsible for the research, development and implementation of new products throughout the Group’s brands. He is also the owner of the 50-metre Riva superyacht currently in build in Ancona.

Galassi put the double-digit growth in a single-digit market down to the decision of the shareholders to reinvest heavily in Research & Development of new models: 30 have been added to the Riva, Custom Line, Pershing and Ferretti Yachts ranges between 2015-2018 at an investment cost of €91 million. Next year alone will see the addition of 8 new models, including the 40-knot, all-aluminium Pershing X Generation 140. 

Alberto Galassi at the Ferretti Group Press Conference in MilanPhoto: Justin RatcliffeThe brilliant results we have presented today are largely generated by the success of the new series models, presented in the four-year period 2015-2018,” said Galassi. “These products have been very successful on the international markets and accounted for about 68% of the total sales value last year.

In terms of core markets, EMEA (Europe, Middle East and Africa) represents the lion’s share of the Group’s sales activity (57%), followed by the Americas (27%) and the Asia-Pacific region (16%). 

The outlook for 2018 foresees a further increase in production value to €704 million and more recruitment across the Group’s six shipyards. Total investments are also forecast to grow from €48 million in 2017 to €56 million next year, with almost equal investment in product development and industrial capacity.

Alberto Galassi at the Ferretti Group Press Conference in MilanPhoto: Justin RatcliffeThe growth in production has put the Group’s existing yards under increasing pressure and Galassi reiterated that they are looking for new premises, possibly in Liguria. Whether this will be an existing yard or a purpose-built facility is not yet known. 

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