BRP today announced a five-year plan, called M25, that includes growing companywide revenues annually by 10 percent, to $9.5 billion, by 2025, along with ambitious growth plans for its Marine and Sea-Doo divisions.
Sea-Doo is the world’s top-selling personal watercraft brand, with 55 percent of the global market share. The brand has grown by 26 percent during the last four years. This year, it saw low-single-digit growth. The company said specialized models, such as the Sea-Doo Fish Pro and Spark Trixx, are driving strong consumer demand.
The company is announcing the new plan in an Analyst and Investor Meeting webcast that will continue through this afternoon.
Tracy Crocker, president of BRP Marine Group, presented the marine strategy update on the webcast this morning. It included two new novel engine configurations that are being called Project M and Project Ghost.
The division plans, according to Crocker, “to become the most innovative marine company that builds and integrates boats and engines in a way that gives consumers an unparalleled experience on the water.”
Crocker said the goal is to double Marine Group revenues to more than $1 billion by fiscal year 2025.
In the past 18 months, BRP has acquired the Alumacraft, Manitou and Quintrex aluminum boat brands. Crocker said aluminum boats represent 70 percent of the recreational outboard industry, and that BRP is now present in the pontoon and aluminum fishing categories. The categories offer “attractive volume and a runway for future growth,” he said.
The strategy for the next three years is “buy, build, transform.” The “buy” section included the acquisitions of the three boat brands last year. “Build,” which started this year, included expanding the dealer network, increasing global Evinrude sales, realizing “synergies leveraging BRP’s manufacturing know-how and innovation,” and capitalizing on “international cross-selling opportunities.”
The final section, Crocker said, is to “transform the marine industry as we did in the powersports business by leveraging our ingenuity, technical expertise, and our design and innovation capabilities.” That will begin in 2021 and move forward, he said.
The goals for Quintrex included developing a 160-plus-dealer network in Australia, expanding boat/motor/trailer sales while growing the engine-attachment rate by fiscal 2023 to 20 percent (100 percent growth), and maximizing Evinrude conversion on these boats.
The company plans to also develop the U.S. dealer network for Alumacraft by 75 percent and Manitou by 80 percent by fiscal year 2023. It also wants to grow its Evinrude product line on OEM boats by 25 percent by fiscal year 2023.
“The company will realize short- to medium-term gains on synergies at Alumacraft, Manitou and Quintrex,” Crocker said. “We will also have a long-term manufacturing strategy and capacity plan.” The company plans to use “BRP innovation DNA” for new-product development.
Crocker also noted “Project M,” with a goal of creating an entry-level, value-priced pontoon boat similar to Sea-Doo’s Spark. “We want to create value for the consumer at very competitive pricing,” he said. The company showed several small pontoons that look very different from competitors’ versions.
Project Ghost, by contrast, will try to provide more usable space on outboard boats by hiding the engines. The goal, Crocker said, is “to deliver a better boating experience by designing an integrated outboard engine and boat product for consumers delivered from the factory.” The webcast shows two pontoons with Ghost engines that are integrated into the stern area. It also showed a Quintrex boat with the same type of engine configuration.
The innovative look promises design potential for the Marine Division’s new boats.