BRP Inc. (TSX:DOO) reported its financial results for the three-month period ended April 30, 2017. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com, as well as in the Quarterly Reports section of BRP's website.
Revenues increased by $26.3 million, or 2.8 percent, to $956.2 million for the three-month period ended April 30, 2017, compared with $929.9 million for the corresponding period ended April 30, 2016. The revenue increase was primarily attributable to higher wholesale of Seasonal Products and PAC. The increase includes an unfavorable foreign exchange rate variation of $1 million.
"I am very pleased with BRP's performance in the start of this new fiscal year, with excellent first quarter revenues and profitability. Our side-by-side business continues on its positive trend with great demand for the Can-Am Defender and Maverick X3 vehicles (SSV)," said José Boisjoli, president and CEO. "Even though the Sea-Doo season is only just starting, we can see a good momentum in the watercraft business. Our Parts, Accessories and Clothing business has also performed very well this quarter, due to good end-of-season snowmobile parts sales and to strong interest in our new SSV accessories."
Gross profit increased by $13.1 million, or 6.7 percent, to $207.2 million for the three-month period ended April 30, 2017, compared with $194.1 million for the corresponding period ended April 30, 2016. The gross profit increase includes a favorable foreign exchange rate variation of $9 million. Gross profit margin percentage increased by 80 basis points to 21.7% from 20.9% for the three-month period ended April 30, 2016. The increase in gross profit margin percentage was primarily due to a favorable product mix in SSV and a favorable foreign exchange rate variation, partially offset by a lower volume of Spyder vehicles and higher production costs.
"I consider that we are in an excellent position to reach our strategic objectives as the entire team remains aligned towards their realization. We are introducing today our new Can-Am off-road line-up with several innovations, and I am sure it will be well received by the market," said Boisjoli. "What's more, snowmobile spring orders from dealers were higher than planned. All this, combined with the excellent results from the first quarter, have led us to increase our guidance."
BRP announced that its board of directors approved a quarterly dividend of $0.08 per subordinate voting share and multiple voting share. BRP's first dividend will be paid on July 13, 2017 to shareholders of record as at the close of business on June 30, 2017. The payment of each quarterly dividend will remain subject to declaration of that dividend by the board of directors. The actual amount of each quarterly dividend, as well as each declaration date, record date and payment date, is subject to the discretion of the board of directors.
“These decisions reflect our solid financial position, strong ongoing cashflow generation ability and confidence in BRP's fundamental value,” said Boisjoli. “We are proud to be in a position to return capital to all shareholders while maintaining our ability to pursue our growth opportunities."