Let’s make a note of the date and see if you can still get Nimbus for 20 krona in a couple of years Growth in the US market is so strong, however, that I believe the entire market (and Nimbus’s result) will turn upward as early as next year. At what point the share price front-runs (or follows) this turnaround remains to be seen.
Oh, so Nimbuses are mass-market boats? Try buying a new Nimbus for twenty grand and let me know how it went. There are certainly a couple of cheaper brands in the Nordic market, but revenue mainly comes from sales of those €100k+ boats, as has already been stated many times in this thread…
And by “oligarchs,” I was mainly referring to all Russian customers, including those who buy twenty-grand Bellas, etc.
Driving past the Kuopio factories tells a grim story about the state of the boat market. The yard has been completely full of boats since the spring (I don’t recall seeing such a situation since the financial crisis). After the summer holidays, one factory was shut down completely, and the two remaining factories are now only working a three-day week.
The finger of blame is pointing strongly at the declining small boat market. Surely the entire (small boat) market hasn’t collapsed to a quarter; we must have also lost ground to competitors.
Order books are at a decent level, though, and apparently large boats will practically sustain Nimbus from here on. It’s also hard to imagine the result weakening much further now that the “excess fat” has been trimmed and small boat production consolidated. Falling interest rates would definitely help a lot in improving demand.
I’m also just poring over the report here over a cup of coffee, and my thoughts can be summarized as: things are actually looking pretty good. Of course, the share price is tanking hard today, but if earnings stay at this level—which is pretty much the bear scenario now—then the stock is not overpriced. It always takes a moment to adapt to changes in the economic environment, and it now looks like the adjustment measures have been completed. The P/E is now a bit over 10x based on realized earnings, and if the assumption is that the economic slump won’t last forever, now is a pretty good time to be buying. I’m seriously considering adding more myself even though my position is already full (~4% of the portfolio), but for that reason, I think I’ll wait and see if a better entry point appears. In the long run, however, it should be a good investment, and you don’t need to use any particularly wild assumptions to reach that conclusion. Since the worst case is essentially that this is a value stock.
My first post on the forum! It’s nice to start writing here. I’m a boating enthusiast through and through, and I wanted to kick things off by discussing Nimbus Group, as I hold nearly two thousand shares in my portfolio. Looking at the big picture, we are somewhat in the red, but I have strong faith that the direction is upward. I bought more during the latest dip to average down my entry price, which so far has proven to be a good move.
It would be great to hear how you, dear fellow forum members, see the development of the boating industry. As I understand it, the industry is growing globally, and the US market, in particular, is currently showing strong upward momentum. It will be interesting to see how this affects the demand for Nimbus’s larger boats and when we might see domestic IPO intentions, for example, regarding Axopar.
I won’t comment on global developments in the boating industry, but I believe that at least here in Finland, the darkest moment is behind us or at least close at hand. Sales from the ongoing boat show season will determine the direction we take from here. In Finland, some boat manufacturers have already begun restarting their production. Of course, many still have yards full of unsold boats.
At least at the Bella factories in Kuopio, the ‘darkest hour’ isn’t over yet, as 70 jobs are under threat of redundancy and 95% of the employees are currently furloughed
“One of the industry’s most challenging,” summarizes Jarkko Pajusalo, CEO of the Finnish Marine Industries Federation Finnboat.
According to Pajusalo, a survey conducted early this year indicates that the difficulties are not yet over. 49 percent of Finnboat’s member companies estimate their turnover will remain unchanged, 32 percent of respondents expect it to rise, and 19 percent expect it to decrease this year.
Of the respondents, 76 percent estimate that the number of personnel will remain at its current level, 16 percent expect to hire more people, and 8 percent estimate that the number of employees will decrease.
The boating industry employs about 3,500 people in Finland. Last year, 15 percent of the companies that responded to the survey laid off staff.
“Purchasing power has weakened not only in Finland but also in nearby markets, and it will likely take the rest of this year for the situation to rectify. This is reflected especially in the demand for small and medium-sized outboard motor boats.”
There are also problems with the cycle between production and sales and leftover boats from the 2021 and 2022 seasons that were registered last year. Various industry players tell Kauppalehti that the situation at different factories is individual, but everyone has had to adapt their operations by the last production season at the latest.
Stock levels vary. Significant discounts on previous years’ models are still expected.
Export value grew
Sweden and Norway remain the largest export markets. Exports to Sweden contracted by 16 percent, but over 2,100 boats were delivered there at a value of 66 million euros. The number of boats exported to Norway decreased by 40 percent, but the value remained at the previous year’s level, nearly 57 million euros.
Although the volume of exports halved in terms of unit numbers, the export value rose from 270 million to 330.8 million euros. A total of nearly 5,000 boats were exported to 52 different countries.
“Exports of small outboard motor boats to the Nordic countries decreased, but exports of large luxury yachts performed well and are already approaching the 2021 record,” Pajusalo says.
NIMBUS GROUP EXPANDS NORTH AMERICAN NIMBUS DEALER NETWORK IN TWO KEY BOATING MARKETS
Nimbus Group AB (publ) reinforces its investment in the North American market through dealer network expansion, appointing two new dealerships for the distribution of Nimbus brand boats. Erickson Marine, located in Minnesota, and Anchor Marine Group in upstate New York, have been chosen as key partners in expanding the accessibility and presence of Nimbus boats in the strategically important North American market.
What’s Nimbus’s financial situation like?
How much debt does the company have?
I could find the information online, of course, but it’s easy to ask here
Growth in the US market is so strong, however, that I believe the entire market (and Nimbus’s result) will turn upward as early as next year. At what point the share price front-runs (or follows) this turnaround remains to be seen.
Try buying a new Nimbus for twenty grand and let me know how it went. There are certainly a couple of cheaper brands in the Nordic market, but revenue mainly comes from sales of those €100k+ boats, as has already been stated many times in this thread…
