BRP reports 34% increase for Q1

BRP Inc. recently reported its financial results for the three-month period ended April 30, 2023.

“Fiscal 2024 is off to a good start for BRP. We delivered a solid first-quarter performance with record revenue for that period and a 43% increase in Normalized EPS – diluted. Once again, we outpaced the North American Powersports industry thanks to sustained consumer demand for our strong and well diversified product portfolio,” said BRP president and CEO José Boisjoli. “We recently celebrated our 10th anniversary as a publicly traded company, and we are proud of our achievements over that period. Our revenues tripled, Normalized EPS – diluted grew eightfold and our Powersports market share almost doubled. Moreover, we created significant value for shareholders with a 368% share price appreciation as of the anniversary date, and $2.7 billion in capital distributions through dividends and share repurchases.”

BRP reported strong deliveries, aided by improvements in the supply chain and inflationary environment, allowed the company to deliver a solid first quarter, outperforming the results of the first quarter of Fiscal 2023. BRP reported an increase of 3% in the company’s North American retail sales for powersports products during the first quarter of Fiscal 2024 compared to the same period last year. The company also reported that the supply chain has gradually returned to a more stable level, resulting in production efficiencies and an increase in gross profit margin compared to the same period last year.

Overall revenues increased by $620.1 million, or 34.3%, to $2,429.4 million for the three-month period ended April 30, 2023, compared to $1,809.3 million for the corresponding period ended April 30, 2022. The increase includes a favorable foreign exchange rate variation of $94.8 million.

• Year-Round Products (55% of Q1-24 revenues): Revenues from Year-Round Products increased by $398.9 million, or 42.7%, to $1,333.3 million for the three-month period, compared to $934.4 million for the corresponding period ended April 30, 2022. The increase was primarily attributable to a higher volume of SSV and 3WV sold due to additional capacity and due to supply chain issues experienced in the prior year that impacted product availability, as well as favorable pricing and product mix across all product lines, which was partially offset by higher sales programs. The increase includes a favorable foreign exchange rate variation of $63 million.
• Seasonal Products (28% of Q1-24 revenues): Revenues from Seasonal Products increased by $283.2 million, or 69.3%, to $691.9 million for the three-month period, compared to $408.7 million for the corresponding period ended April 30, 2022. The increase was primarily attributable to a higher volume of PWC sold, driven by strong market demand and due to supply chain issues experienced in the prior year which impacted product availability, as well as increased deliveries of the Sea-Doo pontoon. The increase was also attributable to favorable pricing across all product lines, partially offset by higher sales programs. The increase includes a favorable foreign exchange rate variation of $16 million.
• Powersports PA&A and OEM Engines (12% of Q1-24 revenues): Revenues from Powersports PA&A and OEM Engines decreased by $58.7 million, or 17.1%, to $284.9 million for the three-month period, compared to $343.6 million for the corresponding period ended April 30, 2022. The decrease in revenues was mainly attributable to a lower volume of sales. The decrease in sales volume was mainly attributable to higher sales of snowmobile PA&A last year driven by late unit deliveries in the season, and lower dealer orders. The decrease includes a favorable foreign exchange rate variation of $11 million.
• Marine (5% of Q1-24 revenues): Revenues from the Marine segment decreased by $9.9 million, or 7.5%, to $122.3 million for the quarter, compared to $132.2 million for the corresponding period ended April 30, 2022. The decrease in revenues from the Marine segment was mainly due to a lower volume of boats and PA&A sold as a result of supply chain disruptions and a longer production ramp-up related to the introduction of new products. The decrease was partially offset by a favorable product mix of boats sold, as well as higher pricing and a favorable foreign exchange rate variation of $5 million.

“Driven by a regular flow of new product introductions, and with many others in their early stage of growth, the future is very promising for BRP. Over the short term, our focus is on executing and optimizing efficiencies, and we remain on pace to deliver on our financial guidance for this year,” concluded Boisjoli.

The complete financial results are available on SEDAR and EDGAR as well as in the section Quarterly Reports of BRP’s website. All financial information is in Canadian dollars unless otherwise noted.