BRP reports Q2 financials

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SeaDoo

BRP today reported sales of $94 million (C$1.21 billion) for its second fiscal quarter ended July 31, 2018. Sales rose 18 percent compared to the same period a year ago. Net income of $33.26 million (C$43 million) was down $48.7 million (C$63 million) from a year ago.

The company said in a statement that it saw 14 percent growth in North American retail sales for its powersports vehicles and outboard engines. The increases primarily came from Sea-Doo and side-by-side vehicle sales. Sales from Marine Engines, Boats and PAC were “stable” at $99.6 million (C$128.8 million) for the quarter, compared to $100.1 million (C$129.5 million) a year ago. BRP said outboard engine retail sales were up on a percentage basis in low-single digits for the quarter

“We are comfortable increasing our guidance with a normalized EPS growth rate of 30 percent to 35 percent for FY19, despite inflationary and other headwinds,” said José Boisjoli, president and CEO, in the statement.

Boisjoli added that the company was now in its fourth year of its “2020 challenge.” “The alignment of the BRP team around our Growth, Agility and Lean objectives is well-demonstrated by the healthy results we are delivering,” he said. “Given this momentum, we expect to achieve our objective to deliver at least C$3.50 of normalized EPS in FY20, one year earlier than initially planned.”

The company acquired Alumacraft Boats in June. It finalized its acquisition of Triton Industries on August 28 for $78.5 million (C$101.4 million). 

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