Grand Large Yachting (GLY), head of 6 sailboat brands (Allures, Outremer, Garcia, Gunboat, RM Yachts and ORC), is celebrating its 20th anniversary in 2023, with the acquisition of Marsaudon Composites and the arrival of new shareholders, the funds Raise Invest, Epopée gestion and iXO PE. Chairman Stephan Constance talks about the plans for France's leading cruising company.
What were the highlights of 2023 for Grand Large Yachting and the industry?
2023 was a pivotal year for the yachting market, with sales normalizing. We have seen the difference between the large cruising market and mainstream shipyards. In our case, demand is sustained, even outstripping supply, unlike in large-scale production.
It's been an exciting year for GLY, with lots of growth, new buildings and new hires - almost 200 a year for the last two years. We've gone from 500 to 750 in 2022, and from 750 to almost 950 in the current financial year. This calls for organization and a strong recruitment drive. The market is not just boats. We're developing not only our product offering, but also our services and training, by animating the waiting period for the boat, so that customers can plan their future trips as serenely as possible.
There has clearly been a Marsaudon effect, with the shipyard taking over in September 2023 and the integration of 60 people with their composites skills, and an infrastructure in the Lorient naval halls that is well suited to catamaran construction. The ORC is a product concept that fits in well with our "string of pearls" strategy: adding shipyards that are pearls in the world of ocean cruising to our necklace, with a well-identified concept and a well-understood brand.
At La Grande Motte, there have been significant investments and transfers, with modernization of the site continuing. As for the Normandy division, it has also seen strong growth, doubling in 2-3 years and shifting towards larger sizes. Where we used to do mostly 45-footers and one or two 50-footers, we now do mostly 50-footers, and have had to put the 40-footer on hold. The new large units building has been fully operational since September 2022.
What is the aim of bringing new investors into GLY?
We've recently seen a number of shipyard takeovers, with the sale of Boréal and the takeover of Alubat. This shows the interest in the long-distance cruising sector, and it's good news that private and institutional investors are looking at it.
With almost 1,000 employees, GLY has reached a size where we need people to challenge us. By bringing in Raise Invest, they bring a financial culture, method, contacts and financial capabilities. They can support us on cross-functional issues such as CSR, with the experience of their various holdings. Local funds are also important, as we have a strong local presence.
Finally, it strengthens governance and institutionalizes decision-making. If we need funds for external growth, they can trust us, know us and support us.
What is the strategy from this point of view in 2024? What are the internal and external levers?
We have an organic growth plan of +80% over 5 years. If there's a new pearl to buy, we'll take a look at it, and we receive applications because we've been identified as a potentially interested buyer. But this is not part of our investment thesis, which is based solely on organic growth.
For Marsaudon, the priority is to break even as quickly as possible, with a range to reposition. This takes time. It generally takes 3 to 5 years to wipe out losses. Making Outremer 45s in Lorient immediately brings in new business, which means that we can keep 60 employees working, whereas with ORC alone, we would have had to keep just 20.
In the monohull division, although the macro-economic market is less favorable than for multihulls, things are going well at GLY. In the RM takeover plan, we had forecast 24 yachts by 2024, and we're on track for 30. RM is no longer losing money.
As for catamarans, the market continues to drive demand. We've achieved a good balance between catamaran and monohull.
For our other companies, such as Griffon and Shoreteam, there's a great deal of activity, where we continue to work for our colleagues. This enables us to keep abreast of market prices and innovations. Shoreteam, for example, has produced parts for the Canopée sailing freighter. Griffon has almost doubled its buildings.
In conclusion, GLY's sales have risen from ?99 million in 2022 to ?123 million in 2023, and should continue to grow. To achieve this, we will continue to recruit in 2024.
