Luxury yacht manufacturer Grand Banks has reported a significant increase in revenue for the third quarter of FY2025, attributing the growth to rising boatbuilding activity. However, the company’s gross profit margin has declined due to a higher proportion of lower-margin trade-in boats and costs associated with product enhancements.
Despite the revenue increase, Grand Banks saw a 42.4 per cent drop in net profit to S$2.3 million for the third quarter ending 31 March 2025 compared to the same period last year. The company’s net profit for the first nine months of FY2025 also decreased by 9.7 per cent to S$9.9 million.
The decline in net profit is primarily attributed to a sales mix with more lower-margin trade-in boats and the expenses incurred for product enhancements. However, the company remains optimistic about its long-term outlook.
Grand Banks reported a 37.8 per cent increase in revenue for the third quarter of FY2025, reaching S$40.1 million, and a 14.0 per cent increase for the first nine months of FY2025, totaling S$107.3 million. The company credits this growth to the increasing demand for its boats.
The group secured 11 new boat orders in the latest quarter, bringing the total orders for the first nine months of FY2025 to 26. Grand Banks manufactures yachts ranging from 42ft to 107ft under the Grand Banks, Eastbay, and Palm Beach brands.
With a net order book standing at S$119.5 million as of end-March 2025, Grand Banks continues to invest in its manufacturing capabilities. The company recently unveiled a new composite manufacturing facility in Malaysia to support the construction of larger and more energy-efficient yachts.
In addition, Grand Banks appointed Lynn Fischer as the global chief marketing officer to enhance the company’s brand presence across key markets. The group has also proposed acquiring two properties in Newport, Rhode Island, subject to shareholder approval.
Despite global economic challenges, Grand Banks remains focused on growth initiatives and long-term investments. The company’s chairman, Basil Chan, highlighted the importance of strengthening the global positioning and branding through facility expansions and strategic acquisitions.
CEO Mark Richards emphasized the company’s commitment to delivering premium craftsmanship and innovative products to meet customer demand. With a strong net order book and ongoing investments in product development, Grand Banks aims to secure its market presence and drive future growth.