Brunswick Corp. yesterday released financial results for the fourth quarter and fiscal year 2021. The report shows strong growth and record sales across the company’s boat, propulsion, and parts and accessories segments.
Brunswick reported net sales of $1.431 billion for the quarter, up 23.2 percent from the same quarter a year prior. Diluted earnings per share for the quarter were $1.31 on a GAAP basis and $1.44 on an adjusted basis. Operating earnings were $121.8 million, up 7.3 percent on an adjusted basis compared with Q4 2020.
For fiscal year 2021, Brunswick reported $5.85 billion in net sales, a 34.5 percent increase from the prior year. Operating earnings for the year were $812.9 million, which represents a 50.7 percent change from FY 2020. Diluted earnings per share for were $8.28 on an adjusted basis, a 63 percent increase.
Mercury Marine posted a 12 percent increase in sales. The propulsion unit gained 160 basis points of U.S. retail market share in 2021, with more than 500 basis points of share gains in each horsepower category over 200 horsepower.
Despite supply chain disruptions, inflation and labor constraints because of Covid-19, Brunswick reported a 14 percent increase in sales in its boat segment. Freedom Boat Club contributed 3 percent of sales to the segment in the quarter.
The results were tempered slightly by data that shows the company’s dealerships had 20 percent fewer boats in inventory in Q4 2021 than the prior year quarter, a 52 percent decline.
There was strong demand in Brunswick’s parts and accessories business for the quarter. There was a 40 percent increase in sales, or a 4 percent increase excluding the impact of acquisitions. The Advanced Systems Group, which includes Navico, RELiON Battery and Semah Tonix businesses, operated together for the first time in the last quarter of 2021.
Brunswick’s Freedom Boat Club unit experienced one of its most robust quarters on record, adding 75 locations and gaining 10,000 new memberships. The company reported that Freedom now operates more than 4,000 boats.
For fiscal year 2022, Brunswick is forecasting net sales between $6.7 and $7 billion, with adjusted earnings per share of $9.60 to $10.25. Brunswick in 2022 expects to have free cash flow in excess of $350 million.