Marine Products Corp. reports 21% increase in sales in Q2
Marine Products Corporation, manufacturer of fiberglass boats under the brand names of Chaparral and Robalo, announced its unaudited results for the quarter ended June 30, 2023.
For the quarter, Marine Products generated net sales of $116.2 million, a 21% increase compared to $95.8 million in the same quarter of the prior year. The increase in net sales was due to an 11% increase in the number of boats sold during the quarter and a 10% increase in the average selling price per boat, as well as an increase in parts and accessories sales. Unit sales increased within both the Chaparral and Robalo brands.
“Second quarter trends remained favorable, although the retail selling season started later than normal due to colder weather in many parts of the country,” stated Ben M. Palmer, Marine Products’ President and Chief Executive Officer. “Dealer inventories remain at the lower end of historical ranges at this time of the year which allow dealers to meet current demand and place orders for 2024 models. Indicators of dealer demand continue to be positive regarding the upcoming model year but there are concerns over consumer sentiment arising from higher interest rates and the possibility of an economic slowdown.”
Gross profit for the second quarter of 2023 was $28.7 million compared to $23 million in the second quarter of the prior year. Gross margin as a percentage of net sales was 24.7% in the second quarter of 2023 compared to 24% in the prior year period. Operating profit for the second quarter of 2023 was $16.5 million, an increase of 26% compared to operating profit of $13.1 million in the same period last year.
“Our supply chain and logistical issues remain a challenge in specific components but have improved compared to recent years. These improvements allowed us to ship more units than we produced during the quarter and are reflected in our higher unit sales, lower inventory balance, and our strong cash balance at the end of the second quarter,” concluded Palmer.
The full Q2 report from Marine Products Corp. can be found here.
