Executives at Brunswick have revealed ambitious goals through 2022 during its annual Brunswick Investor Day, held in Miami prior to the Miami boat shows. Five Brunswick executives recently gave presentations in front of analysts and investors, outlining growth strategies for its four divisions.
This story originally appeared in Trade Only Today.
The strategies included the launches of 96 new boat models by the first quarter of 2021, 110 new Freedom Boat Club locations, continued growth in its P&A businesses, an acceleration of technology initiatives, and $220 million for mergers and acquisitions.
Brunswick plans to raise annual revenues from last year’s $4.1 billion to between $4.9 billion and $5.2 billion in 2020. Revenue growth will range from 6 to 8 percent, including 1 to 2 percent from mergers and acquisitions, according to the presentation.
The company summed up its strategy in one of its visuals: “It’s not our intention to participate in the marine industry. It’s our intention to define it.”
“Brunswick is a very different company now than it was in 2006,” said Brunswick CEO Dave Foulkes, who led with an overview of recent structural changes and upcoming initiatives.
Foulkes noted that boat sales accounted for 41 percent of total sales, or $2.9 billion, in 2006, while in 2019, they were 13 percent of total sales or $1.3 billion. Engines and OEM parts were $1.4 billion in 2006 (20 percent of total sales) and $1.7 billion in 2019 (38 percent). Aftermarket parts and engines brought in $800 million in 2006 (39 percent) and $1.4 billion in 2019 (49 percent). The company’s earnings were $330 million in 2006 and $610 million in 2019.
Foulkes talked about two new operating divisions within Brunswick, Business Acceleration and Advanced Systems Group, and how the Boat Group now has a new structure. “Our new operating model is designed to enhance commercial focus and develop talent as well as leverage our scale,” he said. “The new operating divisions will help us tighten our focus on key opportunities and develop parallel growth initiatives.”