Malibu Boats, Inc. recently announced its financial results for the first quarter ended Sep. 30, 2018.
“Fiscal year 2019 started strong, with our first quarter results delivering robust growth and increasing profitability. Demand for our product continues to be record setting,” Jack Springer, Chief Executive Officer of Malibu Boats, Inc. said. “We also continue to strive to be the most efficient operator in the industry, and our continuous improvement initiatives at Cobalt and Malibu drove further margin expansion in the first quarter. In addition, Malibu is positioned to see minimal impacts from volatility in the global trade environment based on our limited exposure and proactive management.”
Malibu reported net sales for the three months ended Sep. 30, 2018 increased $19.9 million, or 19.3 percent, to $123.5 million as compared to the three months ended Sep. 30, 2017. Unit volume for the three months increased 207 units, or 15.8 percent, to 1,516 units.
Net sales attributable to the Malibu U.S. segment increased $8.4 million, or 13.8 percent, to $69.2 million for the three months, compared to the previous year. Unit volumes attributable to the Malibu U.S. segment increased 86 units for the three months.
Springer said the increase in net sales and unit volume for Malibu U.S. was driven primarily by strong demand for new models and continued strong demand for its larger Axis A24.
Net sales from the company’s Cobalt segment increased $11.3 million, or 30.7 percent, to $48.3 million for the three months ended Sep. 30, 2018 compared to the three months ended Sep. 30, 2017. Unit volumes attributable to Cobalt increased 114 units for the three months.
Springer said the increase in Cobalt net sales and unit volume was driven primarily by strong demand for our R series models.
Net sales from the Malibu Australia segment increased $0.2 million, or 4 percent, to $6.0 million for the first quarter of fiscal 2019.
Cost of sales increased $12.4 million, or 15.3 percent, to $93.0 million as compared to last year, which Springer said was driven primarily by an increase in unit volumes.
Gross profit for Q1 2019 increased $7.6 million, or 33.1 percent, to $30.5 million compared to last year.
Gross margin for the quarter increased 260 basis points from 22.1 percent to 24.7 percent over the same period in the prior fiscal year, which Springer said was due to efficiencies gained in the Cobalt business and an overall increase in unit volumes.
Springer said that Malibu closed its acquisition of Pursuit Boats in October.
“The Malibu and Pursuit teams are working closely together to unlock the incredible potential of this world-class brand, as we believe it will be a meaningful contributor to our growth going forward,” Springer said. “Our first quarter results illustrate the strength of our strategy to deliver consistent profitable growth, while leveraging our world-class brands. We remain incredibly optimistic about the marine industry and the broader economy, and believe we are well-positioned to continue to deliver increasing value for our stakeholders.”