MasterCraft posts record first-quarter result

Every single one of its brands recorded a production increase in the three months up to October 4 that was higher than pre-COVID levels, and despite revenue falling 5.5 per cent as production lines ramped up their capacity in the quarter, net income jumped 10.9 per cent.

Profit rose a modest 2.7 per cent to $US26.2 million ($A36.3 million) for the quarter as buyers dug deeper to pay higher prices for the company’s boats, and dealers earned fewer incentives to sell them.

Gross margin – the amount of money MasterCraft made off each sale in the quarter – rose by 2.0 per cent to 25.3 per cent for the quarter.

The strong result has MasterCraft feeling bullish for the remainder of the financial year.

“Due to a continuation of strong retail demand trends, historically low dealer inventory, the strength of our order book across our brands, and the increasing production rates we delivered in each segment over the course of the quarter, we are raising our guidance for fiscal 2021,” MasterCraft Boats chief executive Fred Brightbill said.

“Importantly, our guidance assumes that we are able to operate all of our facilities throughout the year without any COVID-19 related shutdowns.”

MasterCraft now believes it can end this financial year with a net sales growth of around 30 per cent on last year’s numbers, with the increase in sales expected to nudge into the mid-teens.