Coming off a record second quarter, Bombardier Recreational Products continued to benefit from the outdoor-recreation boom.
The Valcourt, Quebec-based company saw a CAN$1.16 billion ($912.3 million) gain in revenue to CAN5.3 billion ($4.2 billion), a 28 percent increase for the 9-month period, which ended on Oct. 31.
However, revenue was down 5.2 percent for its fiscal Q3 to CAN1.58 billion ($1.3 billion), which the company attributed to continued issues in its supply chain. Net income was also down for the quarter, but up significantly for the year, jumping nearly 500 percent to CAN586 million ($460 million), setting a record for BRP.
“In this challenging environment, our team’s agility allowed us to continue to outpace the Powersports industry in retail sales, gain market share and deliver stronger than expected profitability, translating into record results year-to-date,” said president and CEO José Boisjoli in a statement. ”Our third quarter results reflect the previously anticipated decrease of product deliveries due to supply chain disruptions.”
For the marine segment, revenues increased by 26 percent over last year, up CAN28 million ($21.9 million) to CAN $136.3 million ($107 million). BRP said a higher volume of boats sold and a lack of sales incentives drove the increase, which was partially offset by unfavorable exchange rates.
Boisjoli said he expects BRP’s robust efforts to mitigate supply-chain issues — the primarily cause of its fiscal Q3 dip — to begin to take effect in 2022.
“Building on this momentum, we expect to generate further solid growth in FY23, driven by the sustained consumer interest in powersports, demand from new product introductions, the upcoming significant inventory replenishment cycle and additional production capacity,” Boisjoli said.