BRP today reported record third-quarter sales of $1048.1 million (C$1394.2 million), up 15.8 percent compared to the same period a year ago. Net income was $67.81 million (C$90.2 million) compared to last year’s third quarter of $52.6 million ($70.0 million).
“Consumer demand for BRP’s powersports line-up was also strong this quarter with retail up by more than 25 percent for both side-by-side vehicles and personal watercraft in North America,” said José Boisjoli, president and CEO in a statement.
Third-quarter sales of its Marine division, which includes Evinrude outboards and its newly acquired boat brands, rose to $109.6 million (C$145.8 million) up 25.4 percent compared to the same quarter a year ago.
“The increase was mainly due to the acquisition of Alumacraft and Triton, partially offset by a lower volume of outboard engines sold,” said the statement. “North American outboard engine retail sales decreased on a percentage basis in the low-teen range compared with the three-month period ended October 31, 2017.”
Powersports PAC and OEM engines sales were $151.7 million ($201.8 million) compared to $134.5 million (C$179.1 million) a year ago.
Seasonal Products, which includes personal watercraft, were up to $369.4 million (C$490.9 million) compared to $357.5 million (C$475.6 million) a year ago. Sales in this category also benefitted from a favorable foreign-exchange variation of $3.7 million ($C5.0 million). BRP said North American sales for this category were off by “low-single digits” compared to the same quarter a year ago.
The company said that North American dealer inventories for powersports vehicles and outboard engines increased by 8% compared to October 31, 2017. The increase, said BRP, was due to “higher side-by-side inventory to meet demand for our line-up.”
BRP’s restated guidance for fiscal year 2019 includes 13 to 17 percent gains on total revenues (previously 12 to 16 percent), and Normalized EBITDA gains of 20 to 22 percent.
"The fundamentals of our business are robust, we continue to drive operational excellence, and are thus well positioned to be very competitive despite the current potential headwinds caused by current market inflationary pressure,” said Boisjoli. “We are committed on delivering another record year of normalized EPS growth of 30 to 35 percent.”