Riviera’s voyage of recovery culminates with 19 sales at Sanctuary Cove

After 12 months of economic hardship – Australia’s iconic boat builder, Riviera, has returned to the helm with dignity, strength and determination.

In the wake of the global financial crisis which devastated the boating industry world-wide, Riviera has faced the storm head on, celebrating its 30th year of operations and 22nd anniversary at the Sanctuary Cove International Boat Show with the world release of the new 43 Open Flybridge.

And what a triumphant return it has been for Australia’s most awarded pleasure boat builder, with 19 new boats sold over the four day event, including the sale of nine new 43 Open Flybridges.

This remarkable result far exceeds all expectations with a total value of more than AUD$20 million in sales being achieved from across the award winning range.

Riviera opened the show with the world release of the much anticipated 43 Open Flybridge with IPS on day one, followed by a cocktail party for more than 300 guests on the evening of day two on Riviera’s large 2362 square metre floating display.

Riviera’s chief executive officer John Anderson said the world release of the new 43 Open Flybridge was a huge success with the first 43 sale being achieved of the boat on display within the first hour of the show opening.

“The result firmly speaks of the markets continued love of Riviera design, quality and integrity. Our new 43 Open Flybridge has truly excited the market with its exterior timeless design. Our clients like the way the cockpit and saloon flow together to create one giant entertaining space, they appreciate the latest technology including IPS propulsion and digital switching and of course they admire our superior interior design and finish. These elements have been combined to create a very special pleasure boat and a new breed of Riviera flybridge boats,” Mr Anderson said.

Sales were across the board from 36 to 61 feet including multiple sales of 5800 and 5000 Sport Yachts, a number of flybridge models including a 61 Enclosed Flybridge.

It is an exciting time for Riviera with further new models currently under development for release in early 2011 all bearing Riviera’s hallmark styling and impeccable and multi-award wining build quality.

It has been a challenging 12 months following the voluntary appointment of receivers and managers on May 8, 2009 just prior to one of Australia’s premier boat shows, the Sanctuary Cove International Boat Show.

While many companies might have struggled with such a daunting challenge, Riviera has embraced change and travelled a significant voyage since May 2009.

At the 2009 Sanctuary Cove Show, Riviera launched the 5800 Sport Yacht with IPS. Two months later, the 5000 Sport Yacht with Zeus drives and the 51 Enclosed Flybridge with triple IPS were both launched at the Sydney International Boat Show in July.

“The 2009 Sanctuary Cove International Boat Show was the beginning of a remarkable turnaround for the company and it has been an amazing journey,” said Riviera Chief executive Officer, John Anderson.

“The support we have received from our staff, dealers and Riviera owners around the world have kept us strong and now as we head to the Sydney International Boat Show, we will continue to keep the Riviera dream alive.”

“We have sold 113 new Riviera’s through our global dealer network valued at AUD$109 million since May last year.

“Given the global market conditions we have endured in this period, this is a remarkable achievement and truly attests to our brand loyalty and our world class quality. The impact on our sales when we come out of Receivership will certainly have a significantly positive effect given our track record over the past 12 months,” Mr Anderson said.

Riviera achieved a 35% growth in sales for the first quarter of 2010, recording the best sales in 15 months with 36 new boats sold from January 1 to March 31 valued at AUD$38 million.

Riviera has also expanded its global dealer network over the past 12 months appointing Wally Castro Marine in Puerto Rico, joining forces with Emerald Pacific Yachts to service the US West Coast from Alaska to 2500 nautical miles south to Cabo San Lucas, as well as appointing R Marine New Zealand as the sole retail arm for the full Riviera line in New Zealand.

A rise in new boat sales in Australia, Europe and the USA markets has resulted in an average sales run-rate of two-and-a-half new boats per week over the past 12 months.

This sales success has driven Riviera to restructure its production lines to a continuous flow line to assist with the ramp up of production to meet the growing new boat sales.

In April 2010, Riviera’s bankers officially announced that they had withdrawn the company from sale and the company will officially come out of Administration by the end of June this year.

Mr Anderson said the banks would hold the business for the medium term with the focus now firmly on growing and developing the business.

“So our focus is not selling the business, it is rebuilding the business and making it even stronger,” Mr Anderson said.

“It’s all good news. We are in the exciting re-building phase of the business. We have 400 people on site right now building boats and we are actively recruiting new staff. Our global sales for the first quarter of 2010 are up and we are not even half-way through the year yet.

“These sales are coming from Europe, the USA, New Zealand and Australia and are certainly ahead of our plans and expectations. The global inventory (stock) held by our dealers is the lowest it has been in over two years and we are now building selected boats for stock to meet demand.”

Riviera’s sights are firmly set on the Sydney International Boat Show and the Sydney launch of the new 43 Open Flybridge, which is the first in a series of new models that will be released over the next 12 months.

“We have a fantastic product plan that takes us forward for the next five years that we are now implementing,” Mr Anderson said.

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