BRP reports fiscal year 2018 Q3 results
BRP Inc. reported its financial results for the three- and nine-month periods ended Oct. 31, 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.
“I am proud of our retail momentum and the strong execution of our team worldwide; our third-quarter results are on target, and they represent a record in BRP history,” said José Boisjoli, president and CEO.
“We had an excellent reaction to our latest products at our dealer event in Dallas. We entered a new segment with the launch of the Can-Am Maverick Trail vehicle, introduced a new Sea-Doo watercraft platform and announced an entry-level Spyder family starting at under US$10,000 for next Fall.”
“We are also announcing today a second phase of investment to increase SSV and powertrain production capacity, that should be completed in fiscal year 2020,” he continued. “This decision is testament to the strong growth we see with our Can-Am side-by-side business and our commitment to further developing it.”
Revenues increased by $160.3 million, or 14.8 percent, to $1,240.5 million for the three-month period ended Oct. 31, 2017, compared with $1,080.2 million for the corresponding period ended Oct. 31, 2016 . The revenue increase was mainly due to higher wholesale in Year-Round Products and Seasonal Products. The increase was partially offset by an unfavorable foreign exchange rate variation of $29 million.
Gross profit increased by $22.2 million, or 7.2 percent, to $329.4 million for the three-month period ended Oct. 31, 2017, compared with $307.2 million for the corresponding period ended Oct. 31, 2016.
The gross profit increase includes an unfavorable foreign exchange rate variation of $15 million. Gross profit margin percentage decreased by 180 basis points to 26.6 percent from 28.4 percent for the three-month period ended Oct. 31, 2016.
The decrease was primarily due to higher sales program costs driven by the increase in retail sales, higher production costs and an unfavorable foreign exchange rate variation, partially offset by a higher volume of SSV and snowmobiles sold and general price increases.
Revenues increased by $357.5 million, or 12.5 percent, to $3,223.7 million for the nine-month period ended Oct. 31, 2017, compared with $2,866.2 million for the corresponding period ended Oct. 31, 2016. The revenue increase was primarily attributable to higher wholesale of Year-Round Products and Seasonal Products. The increase was partially offset by an unfavorable foreign exchange rate variation of $22 million.
Gross profit increased by $77.0 million, or 11.4 percent, to $750.3 million for the nine-month period ended Oct. 31, 2017, compared with $673.3 million for the corresponding period ended Oct. 31, 2016.
The gross profit increase includes an unfavorable foreign exchange rate variation of $10 million. Gross profit margin percentage decreased by 20 basis points to 23.3 percent from 23.5 percent for the nine-month period ended Oct. 31, 2016.
The decrease was primarily due to higher production costs and higher sales program costs driven by the increase in retail sales, partially offset by a favorable product mix, a higher volume in SSV as well as general price increases.
Revenues from Propulsion Systems decreased by $0.7 million, or 0.7 percent, to $93.5 million for the three-month period ended Oct. 31, 2017, compared with $94.2 million for the corresponding period ended Oct. 31, 2016. The decrease includes an unfavorable foreign exchange rate variation of $2 million.
