THE ITALIAN SEA GROUP ORDERS INCREASED TO ONE BILLION
Revenues increasing also thanks to the acquisition of Perini Navi completed last January.
Sales up in the USA, where TISG has inaugurated first flagship store in August.
Raoul de Forcade
Order backlog of The Italian Sea Group (TISG), global operator in luxury yachting, specialized in the construction of large yachts from 50 to 140 meters, led by Giovanni Costantino, came close to reaching 1 billion euro. Along with the Marina di Carrara Headquarters, the La Spezia and Viareggio shipyards have just been added to the Company – with the acquisition, in January, of Perini Navi – and are contributing to its development in production sectors that initially were not part of the core business, like aluminum yachts from 24 to 50 meters, under construction with the Picchiotti brand.
In addition, an expansion of the production site of Marina di Carrara is underway, with investments already started for 50 million.
“We have entered the shipyard of Perini Navi in February of this year – Costantino explains – and the production of those shipyards is already worth 12% of TISG’s total revenues (which amount to 133 million in the semester, +64% compared to the same period of the 2021). This was also due to the fact that we took the order for the 60 meters sailing yacht of the CEO of Oracle, Larry Ellison, whose construction had stopped with the bankruptcy of Perini Navi and it was stuck at the 40%. We will deliver it in 2023”.
“The results – highlights Constantino – have been achieved in spite of the increase in electricity prices (with bills rising from €300,000 to almost €700,000 a month), gas prices and raw material prices.
Fortunately – he says – among the works in progress the shipyard there is the project of the coverage of all the buildings with solar panels. At the moment we are at 35% of the spaces and this saves us €75,000 of electricity a month. With the extension to all the shipyard we will arrive to a saving of €200,000 a month”.
Another source of savings, according to Constantino, is the decision, taken six years ago, of not attending any boat show. “The results proved me right. Our clients buying yachts of ultra-high range do not go to the shows: we have direct relationships with them”. Not participating to the shows means saving millions of Euros and also not leaving the Company without employees in occasion of the shows”.
Very clear choices, which gave results. “Our orderbook – affirms the CEO of TISG – was of 922 million Euros at the 30th of June, today has grown and we are almost at 1 billion Euros of order book”.
And we confirm the guidance for 2022 (with revenues between 280 and 295 million). Regarding the production, he says “Admiral brand continues building yachts over 55 meters. Tecnomar carries on the strategy of sporty and fast yachts under 50 meters, and it is producing the 20 meters for Lamborghini, whose production will be moved to La Spezia, at the rate of one per month, with an order book full until 2023 and first semester of 2024. The sales are all around the world, with a particular interest in the USA”.
In the USA, TISG has inaugurated in August the first flagship at West Hampton, Long Island, realized in collaboration with FGI Yacht Frank Grzeszczak, Sales Director for Admiral e Tecnomar.
Regarding the NCA unit, Costantino explains “with respect to 30 June 2021, we close with 140% more revenues, 23.1 million”. But it is on the Picchiotti brand that the entrepreneur focuses his attention. “With Picchiotti we are entering a new business model for us: serial production. Our competitors use the fiberglass. We will produce yachts in series completely in aluminum from 24 to 55 meters. We will deliver 3 yachts in 2024, 8 in 2025, 8 in 2026. And the most important market will be the Americas”.
Regarding the expansion of Carrara Constantino points out that, among others, more than 600 meters of dock have been added, two new sheds and a new dry dock have been built, “and now we are completing an additional shed of 35 x 200 metres which will be finished in December”. Lastly, concerning the environment “among the 19 yachts under construction, 12 are equipped with electric diesel or hybrid, with emissions of a Porsche. Then we are investing in research and development to reach a full electric engine with hydrogen propulsion. With Perini we have already arrived to a full electric system”.