The Italian Sea Group (TISG) has reported significant year-on-year growth in revenue and profit, as well as a reduction in debt in its consolidated preliminary results as of December 31st, 2023. In its forecasts for the next two years, Giovanni Costantino, TISG’s Founder & CEO, says the shipyard aims to continue growing, utilising the recent investments made in production capacity.

“2023 has been a challenging yet satisfying year,” explains Costantino. “Our return to the Monaco Yacht Show, the important deliveries, and the development of new, exciting projects for our brands have represented an additional step for the Group’s growth, which is now an established reference point in luxury yachting.”

Total revenues across the company’s Admiral, Tecnomar, Perini Navi, Picchiotti, NCA Refit, and Celi 1920 brands stand at €363 million for 2023, up 23% from €295 million in the previous year, indicating a solid commercial performance. This is bolstered by TISG’s EBITDA of €61 million, increasing significantly by 30% versus 2022. The firm’s profit margin rose to 16.8% from 15.9% the previous year, representing a more efficient approach to generating profits from its core business operations.

Looking at the Viareggio-based shipyard’s order book from both shipbuilding and refit of €1.265 billion, the total net backlog is €609 million. That means the company can rely on a remaining €656 million in expected revenue from these outstanding contracts once they are completed and yachts delivered, providing good visibility for its future financial positioning.

With revenues and profit margins both rising, Costantino maintains that the shipyard has exceeded the market’s expectations. “We also recorded a positive net financial position, despite a rewarding dividend policy and the investments made for the integration of a company like Celi 1920, for which we have interesting perspectives.”

Throughout the year, TISG invested around €10 million, mainly related to the restart of the Perini Navi hub in Viareggio and interventions on the production capacity of carpentry specialists Celi 1920. To expand the latter, TISG acquired two new sheds, which will allow TISG to internalise up to 70% of its production needs for wooden furniture.

The company's financial situation ultimately improved by €13 million from 2022 to 2023, as its net financial position shifted from negative €11 million to positive €2 million. This change was influenced by the distribution of €14.4 million in dividends to its shareholders, investments totalling €10 million, and the sale of an office building within the Viareggio shipyard, resulting in a cash inflow of €10.6 million.

Over the next two years TISG forecasts “significant organic growth and benefits” from its current structure, supported by the integration of Perini Navi and its assets, with expected revenues of around €400-420 million and an EBITDA Margin between 17-17.5% in 2025. The following year, the group is aiming to grow further with revenues between €430-450 million with an EBITDA Margin between 18-18.5% in 2025.

“With seven yacht launches, six of which we will deliver, 2024 promises to be a year full of new challenges and exciting opportunities for development, which I am sure we will be able to overcome and face in the best way,” adds Costantino.

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The Italian Sea Group

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