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BRP reports Q2 results

BRP’s boat brand acquisitions have helped boost the company’s bottom line in the marine segment.

BRP’s boat brand acquisitions have helped boost the company’s bottom line in the marine segment.

BRP’s revenue increased by about $190 million in the second quarter, or 20.9 percent, to just over $1 billion, due mainly to higher wholesale shipments of year-round products and a favorable exchange rate.

(Trade Only has converted BRP’s earnings from Canadian dollars to U.S. dollars at today’s exchange rate.)

The company's North American retail sales for powersports vehicles and outboard engines increased by 9 percent for the three-month period, compared to the same time last year.

An increase driven by year-round products was partially offset by lower retail of outboard engines, the company said.

Revenues from the marine segment decreased by $1.8 million, or 1.9 percent, to $95 million in the second quarter versus 2018, due mainly to the lower volume of outboard engines sold. That decline was mostly offset by additional revenues following the acquisition of boat companies.

Gross profit overall increased by $35.9 million, or 17 percent, to $246.7 million, though margins decreased by 70 basis points — a decline due in part to higher commodity, production and distribution costs.

Operating expenses increased by $30.6 million, which the company partly chalked up to product investments, costs related to the modernization of information systems and additional operating expenses at Alumacraft Boat Co. and Triton Industries, Inc., following their acquisition in fiscal year 2019.

The company's North American retail sales for powersports vehicles and outboard engines increased by 9 percent for the six-month period that ended July 31, compared with the same period last year, mainly due to an increase in year-round products that was again, partially offset by lower retail of outboard engines.

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