Nimbus Group, a renowned player in the marine industry, experienced a 24% decline in sales to MSEK 273 ($27.3 million) during the fourth quarter of 2024, primarily due to a cautious market outlook. This downturn reflects a broader trend of reduced consumer spending in the sector.
Despite the year-over-year slump of 15% in sales, Nimbus Group is optimistic about a potential market rebound, as evidenced by a 53% surge in order intake over the past year. This significant increase suggests that the market could be reaching its lowest point, setting the stage for a recovery.
The final quarter of 2024 saw a notable 29% drop in North American sales, with a steep 55% decline in sales of Edgewater boats. This was partially offset by a 4% rise in sales across other brands within the group, coupled with an uptick in order placements.
Contrastingly, the Nordic region displayed robust growth, with sales soaring by 26% and order intake more than doubling, increasing by 102%. Europe, however, faced a 21% decrease in sales, although orders rose impressively by 95%.
For the entire year, North American sales marginally increased by 1% to MSEK 567 ($56.7 million). Notably, sales of Nimbus brand boats jumped by 27%, while Edgewater's sales dipped to MSEK 191 ($19.1 million), following a strategic pause in production early in the year aimed at reducing dealer inventories.
Jan-Erik Lindström, the President and CEO of Nimbus Group, remarked, "The fourth quarter of 2024 continued to mirror the weak trends observed in the prior quarters but also hinted at a forthcoming recovery." He added, "Significant sales growth was particularly evident among our retail partners in Sweden, which was among the first regions to face the downturn and now appears to be leading the recovery."
Amid these fluctuations, Nimbus Group has been proactive in managing costs and refining its focus on the premium segment. This strategic pivot included exiting the small boat business in Finland, as part of broader cost-cutting measures and market realignment efforts.
Lindström expressed cautious optimism for 2025, noting, "Following our growth in the premium segment, we find ourselves with slightly elevated cost structures. However, ongoing cost management and signs of market improvement give us confidence looking forward." This sentiment underscores the company's resilience and adaptive strategies in face of market variability.
As Nimbus Group navigates these challenging waters, its robust order book and strategic adjustments suggest that it is well-positioned to capitalize on the eventual market upturn.
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