BRP is chalking up a 10 percent decline in Evinrude retail sales to the fact that engines are increasingly packaged with new boats and sold together.
“The North American outboard engine industry is up low single digit with Evinrude retail down about 10 percent,” said president and CEO José Boisjoli on a call discussing fiscal 2019 results with investors last week. “This decline is due to the same trend that we've seen in the past few years with the industry growth driven by the package business where boats and motor are sold together. This one of the principal reason we made our entry into the boat business.”
Retail for Manitou is up about 50 percent and Alumacraft is down in the 20 percent range, said Boisjoli.
“We are pleased with those results as both companies are currently in a transition phase with their dealers,” said Boisjoli. “There is still a lot of growth planned for this business. And remember that our marine plan is a mid to long-term strategy.”
When BRP announced the Alumacraft acquisition, two engine suppliers opted to stop delivering to the company, said Boisjoli.
“It created some confusion with the dealer network,” said Boisjoli. “But right now, we are working on this and we believe we will gain back and we will have — if a dealer wants to drop Alumacraft, we have plenty of Evinrude dealers that raise their hands to take it — but it will take a year to adjust all this.”
Revenues for the fiscal year were $5.2 billion, a 17.8 percent increase over fiscal year 2018.
Gross profit of $1.25 billion represent 23.9 percent of revenues, and net income of $227.3 million was 11.8 million less than the year prior.
“Fiscal year 2019 was an incredible year for us, with annual sales of $5.2 billion (Canadian dollars) and 37 percent growth of normalized EPS,” said Boisjoli in a statement. “I’m extremely proud of the team and how well our people executed and delivered on our business plan, achieving record results. We have demonstrated quarter after quarter that our capacity to innovate allows us to outpace the industry and we intend to continue to do so.”