Motoring / Yachts

Princess Yachts Orders Exceed $1 Billion for First Time in 53 Years

Princess Yachts Ltd delivered a record-breaking year in 2017, with its highest ever sales in its 53-year history, contributed largely by advance orders totalling more than US$1billion (£¾ billion).

Apr 11, 2018 | By Jonathan Ho
Princess Yacht S60 recently in Singapore

Princess Yacht S60 recently in Singapore

In a 2017 report provided by Global Industry Analysts Inc, the global Yacht Industry is projected to reach US$74.7 billion by 2022, encouraged largely by the rising interest in luxury yachts among high net worth individuals particularly in developing regions of Asia-Pacific and the Middle East. In context of the comprehensive analytics for the global Yacht market, it comes as little surprise that Princess Yachts orders exceeded $1 Billion (£¾ billion) for the first time in 53 Years.

Princess Yachts Orders Exceed $1 Billion for First Time in 53 Years

Princess Yachts Ltd delivered a record-breaking year in 2017, with its highest ever sales in its 53-year history, contributed largely by advance orders totalling more than US$1billion (£¾ billion). Though the US captures a dominant 47.4% share of the global luxury yacht market, Asia, specifically China, leads with projected growth of 8.1% CAGR.

“This has been a landmark year in the history of Princess. With our exciting launch plan this year of unique and exceptional yachts, coupled with our unprecedented $1 billion order book which stretches well into 2019, 2018 is set to be another record year in sales and profits for Princess Yachts.” – Antony Sheriff, Executive Chairman of Princess Yachts

Princess Yachts, a  L Catterton-owned UK luxury yacht builder, is particularly strong in Asia, with more than 25 years operating in Malaysia. In China, it recently strengthened its distribution network with its announcement of that its South China and Hong Kong office will also undertake responsibility for the People’s Republic of China. The newly formed Princess Yachts Greater China Limited is an amalgamate of existing distributors for Hong Kong, Macau and Southern China – a subsidiary of Chow Tai Fook Enterprises Limited (a flagship investment holding company controlled by Dato Dr. Cheng Yu Teng) and new partner, DCH Marine Limited, a wholly owned subsidiary of Hong Kong-based Dah Chong Hong Holdings Ltd.

Princess Yachts had a strong showing at Singapore Rendezvous 2017

Princess Yachts had a strong showing at Singapore Rendezvous 2017

Financial results of Princess Yachts Ltd. for the 12 months to 31 December 2017 showed record turnover of £274.4 million (+26.6% on 2016) and an Operating Profit before Exceptionals of £7.9m (2.9% of sales), representing a turnaround of £15 million (6.1% points) on its 2016 results and continuing the trend of strong year-on-year growth.

Princess Yachts’ recent performance at the industry’s three biggest global sales events – the Cannes, Fort Lauderdale and Düsseldorf boat shows, saw the company power ahead across its entire fleet. Princess’ advance order book report 20% sales higher than the previous year, concurring with Yacht Industry reports that growing number of millionaire households are spurring on market growth.

According to a 2016 Global Wealth Report, the top 10 countries with a high number of millionaire households show the United States in the lead with 7,875,000 households, followed by China with 1,990,000, Japan with 1,100,000, UK with 976,000 and Switzerland with 532,000.

Princess Yachts is poised for an even more successful year in 2018. The year began with the launch of the V50, V65 and S78 models and will see an additional 6 launches by year-end, including the revolutionary carbon fibre R35 sports boat which will feature the innovative Active Foil System for world class performance, efficiency and stability. This unprecedented launch programme is underpinned by a stronger-than-ever presence at the world’s leading boat shows, intensified marketing programmes, and a significant investment in production and quality at its Plymouth headquarters. To support this growth, Princess has increased its workforce by over 500 team members (2700 total) in 2017.

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