Coinciding with the publication of its record results for 2023, the Bénéteau Group made public its entry into the capital of foil-powered boat builder Candela. We spoke to Gianguido Girotti, Managing Director of the Boat Division, about the deal, and beyond that, about 2023 and the challenges ahead for the international yachting heavyweight.
Why should the Bénéteau Group invest in a company like Candela? Is it more technological or economic?
For several years now, the Group has been demonstrating the importance of 360-degree sustainable development. Foils and naval architecture are important in this context, as are the materials we work with, such as resins and natural fibers. The foil, as a perspective for the dayboat market, is very interesting to explore. The aim is to reduce fuel consumption.
Today we're only taking a stake, to learn from and support Candela's historic owners, and to help our respective companies move forward. There's no idea of taking the majority right away. Candela is the most advanced in the foiler field, and it's our role as leaders to support the leaders in their markets.
Beyond the technological aspects, the Candela P12, designed for passenger transport to move tourists or as a means of urban transport, opens up new segments, and has the advantage of being acyclic in relation to pleasure boating.
The Bénéteau Group had withdrawn from markets outside the yachting sector with the end of CNB pro, so why return to it?
Here, it's still composite. It's the same structural management, unlike aluminum at CNB Pro, which was different from the know-how at the heart of the group. In terms of technological innovation, there are 2 main areas of application: racing, with the America's Cup or the Figaro on which we're working, and the BtoB market. In our analysis, Candela's interest was also that it wasn't just about pleasure boating, but also about BtoB.
While the 2023 results were record-breaking overall, there was a decline in the number of small motorboats sold, offset by price increases. What are the challenges for 2024?
Already in 2019, when we launched the Let's Go Beyond plan, we announced that we wanted to go up in value more than in volume. This is nothing new. But inflation and interest rates have created a gap with first-time buyers. Newcomers to the yachting industry continue to buy. On the other hand, there has been a slowdown in many families of buyers, those who have already owned a boat and have seen the gap widen between new and pre-owned. The Group had anticipated this well, and small motorboats are not our most strategic focus.
As dealer inventories are replenished, fewer boats should be delivered to them. What are your relations with these dealers, at a time when more and more players are arriving in France from the automotive world?
We see dealers as partners. 2023 was a very good year. 2024 will be more difficult. We have supported them and have the financial partners worldwide to do so. Our record results have enabled us to build up a war chest so that we can emerge even stronger. As evidenced by the investment in Candela we just mentioned, we're right in the middle of the action plan to get back on track with innovation and new products. I'm a great believer in market dynamics, which we'll see when interest rates come down.
In our business, the margin rate is higher than in the automotive industry, which is complicated. They have to change. In yachting, there's more room for maneuver, but it's a new business to learn. There's no magic formula between the car dealer and the independent who knows the sector well. With the strategy of value rather than volume, the geographic distribution of the network will evolve, as there are fewer boats to sell. But the dealer remains essential. It's an extension of the Group's strike force.
