Bombardier Recreational Products continued to reap the benefits of the outdoor-recreation boom, reporting a record Q2.
The Valcourt, Quebec-based company saw a CAN$670.5 million ($531.9 million) jump in revenue to CAN1.904 billion ($1.51 billion), a 54 percent increase in revenue for FY22 second quarter, which ended on July 31.
“We delivered another record quarter,” said president and CEO José Boisjoli in a statement. “These excellent results are fueled by continued strong demand, market share gains, traction with new entrants as well as our teams’ ability to manage through a challenging supply chain environment.”
Gross profit saw a big gain, posting a 130 percent jump to CAN570.1 million ($452.3 million). Net income was up 69 percent to CAN212.9 million ($169 million).
For the marine segment, revenues increased by 59 percent over last year, up CAN$47million ($37.3 million) to CAN $128.8 million ($102.1 million). A favorable mix of boats and the lack of sales incentives drove the increase, which was partially offset by the mothballing of Evinrude outboards.
Overall, BRP attributed the increases to the robust retail environment when compared to last year, which was impacted by the pandemic, as well as lower sales programs due to strong retail demand.
The company has upped revenue guidance for FY22, estimating growth to be between 27 percent to 35 percent compared to last year. Though BRP said it expects supply chain constraints to be an ongoing issue, it forecasts that the situation will improve going into Q4, with strong demand for its new products — including the jet-powered Sea-Doo Switch line.
“We are optimistic about the future considering continued strong demand for our products, our new and exciting product introductions and additional capacity coming online over the next few months,” said Boisjoli. “We are well-positioned to build on this momentum and generate further growth in Fiscal 23 primarily driven by sustained consumer interest in powersports and the upcoming significant inventory replenishment cycle.”