Sweden-basaed Nimbus Group reported net sales of $59 million in the second quarter, a decrease of 18% year-over-year. For the first six months of the year, net sales were down 9% to $91.64 million. Organic growth was down 18%, and operating cash flow for the quarter was $7.5 million.
“The second quarter of the year was marked by a cautious approach, with a relatively weak trend for both sales and profitability,” president and CEO Jan-Erik Lindström said in a statement.
Lindström said there were bright spots in the quarter, including the Nimbus brand gaining market share in North America and the Nordic market rebounding.
The decrease in sales was driven by fewer sales in value-oriented boats and premium models. Gross margin decreased by 1.5 percentage points to 15.5%. The company said this was impacted by small-boat output at the Finnish facility and a shutdown at EdgeWater Boats during the first quarter. During the second quarter, EdgeWater production gradually ramped up and had returned to normal by the end of June.
The order book totaled $48.15 million, a 54% decline year-over-year, and consisted of 94% premium boats. The company includes only confirmed orders that were planned for production.
Operating cash flow and money from operations was affected by lower levels of capital in inventory and accounts payables. Reductions in inventory were lower than expected due to weaker demand in Europe.
The Nordic region comprises 55% of Nimbus Group’s sales, and North America and Europe account for 22% each. North American sales for the second quarter were up 9%, Nordic declined 15%, and Europe was down 25%.
