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BRP reports Q4, FY 2019 results

BRP Inc. (TSX:DOO; NASDAQ:DOOO)  reported its financial results for the three- and twelve-month periods ended Jan. 31, 2019.  The complete financial results are available in the Quarterly Reports section of BRP’s website.

“Fiscal year 2019 was an incredible year for us, with annual sales of CA $5.2 billion and 37 percent growth of Normalized EPS. I’m extremely proud of the team and how well our people executed and delivered on our business plan, achieving record results. We have demonstrated quarter after quarter that our capacity to innovate allows us to outpace the industry and we intend to continue to do so”, declared José Boisjoli, BRP’s President and CEO.

“BRP has established itself as a leader in the powersports industry with renowned brands and market-shaping products. With this strong performance and market position, we are confident to be able to deliver our guidance of $3.50 to $3.70 of Normalized EPS, a growth rate of 13 percent to 19 percent”, concluded Boisjoli.

Revenues increased by $279.9 million, or 22.8 percent, to $1,505.9 million for the three-month period ended Jan. 31, 2019, compared with $1,226.0 million for the corresponding period ended Jan. 31, 2018. The revenue increase was mainly due to higher wholesale in Seasonal Products and Year-Round Products and a favorable foreign exchange rate variation of $38 million.

The Company's North American retail sales for powersports vehicles and outboard engines increased by 7 percent for the three-month period ended Jan. 31, 2019 compared with the three-month period ended Jan. 31, 2018. The increase was driven by Year-Round Products. Gross profit increased by $52.8 million, or 18.7 percent, to $334.9 million for the three-month period ended Jan. 31, 2019, compared with $282.1 million for the corresponding period ended Jan. 31, 2018.

Gross profit margin percentage decreased by 80 basis points to 22.2 percent from 23.0 percent for the three-month period ended Jan. 31, 2018. This decrease was primarily due to higher commodity, production and distribution costs, partially offset by a higher volume of 3WV, snowmobiles and PAC sold.

Revenues from marine segment increased by $31.8 million, or 31.2 percent, to $133.6 million for the three-month period ended Jan. 31, 2019, compared with $101.8 million for the corresponding period ended Jan. 31, 2018. The increase was mainly due to the acquisition of Alumacraft and Triton, partially offset by a lower volume of outboard engines sold. North American outboard engine retail sales decreased on a percentage basis in the low-twenties range compared with the three-month period ended Jan. 31, 2018.

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