Malibu reports strong growth after Cobalt acquisition

Riding the wave of popularity in towsports, and following its acquisition of Cobalt Boats, Malibu has announced a bumper financial result for the first quarter of fiscal 2018 ending September 30, 2017.

Net sales increased 66.9 per cent to $103.5 million, and unit volume increased 57.1 per cent to 1309 boats, compared to the first quarter of 2017.

Net sales per unit increased 6.2 per cent to US$79,099 and net sales per unit for Malibu U.S. alone increased 6.1 per cent to US$79,348 compared to the first quarter of fiscal 2017.

This reflects the market shift to more upmarket and kitted out boats of higher quality and substance. The entry-level price-point fibreglass boat market is soft, with aluminium staking its claim to that space.

The rest of the Malibu report to shareholders was buoyant, with gross profit increasing 44.9 per cent to $22.9 million. Forecasts for growth were also made.

Jack Springer, Chief Executive Officer of Malibu, said the business and brand had an excellent first quarter and continued to experience strong growth and performance.

"Reflective of continued Malibu growth and our acquisition of Cobalt Boats, our unit sales, revenue, gross profit, net income and Adjusted EBITDA were substantially higher year over year.

"Our business in the United States is strong at the wholesale and retail levels and we expect this momentum to continue.

"Canada continues to make slight gains and the recent strengthening of the Canadian dollar is assisting that improvement.

"Australia continues to perform well for Malibu," Mr Springer said.

Market share leadership at Malibu and Cobalt was said to be solid with operating proficiencies continuing to drive strong margins.

Malibu is continuing to roll out new products and will deliver two new models, and two new Axis boats, while Cobalt will deliver three new models in 2018. The pace of new-product delivery will quicken over the next few years, Mr Springer said.

"We believe our new boats and product innovations will deliver strong demand during the upcoming boat show season.

"Malibu is solid and strong, delivering record-setting results each quarter. Cobalt has proven to be the acquisition we wanted and thought it would be, and we expect it to strengthen performance over time.

"We are very pleased with our financial and operating results and are optimistic for continued growth and economic recovery."

Based in Tennessee, Malibu Boats has the #1 market share position in the US in the performance sport boat category through its Malibu and Axis Wake Research brands. After Malibu Boats' recent acquisition of Cobalt Boats, Malibu Boats has the #1 market share position in the US in the 24-29ft segment of the sterndrive category.

More at Malibu Boats Australia.

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