BRP Inc. recently reported its financial results for the three- and nine-month periods ended October 31, 2023.
BRP reported the three-month period ended October 31, 2023 was marked by a decrease in the volume of shipments and revenues compared to the three-month period last year. BRP indicated the results of the third quarter of this fiscal year were driven by a decrease in personal watercraft (PWC) and 3WV deliveries, as the third quarter of this fiscal year compares unfavorably to a strong third quarter last fiscal year, where shipments of PWC and 3WV were completed after peak retail season due to supply chain issues last year.
“BRP delivered sound third-quarter results in the context of the current macroeconomic environment. Our team’s focus on operational excellence enabled us to improve gross margin despite reduced volumes. Our performance has led to solid retail sales growth since the beginning of the year, resulting in further market share gains in the North American Powersports industry,” said José Boisjoli, President and CEO of BRP. “Like the rest of the industry, we have observed softening demand, particularly in international markets. We have proactively adjusted production and deliveries to manage network inventory and protect our dealer value proposition.”
Revenues decreased by $241.5 million, or 8.9%, to $2,467.8 million for the three-month period in 2023, compared to $2,709.3 million for the corresponding period ended October 31, 2022. BRP said the decrease was primarily due to a lower volume of PWC, 3WV, SSV and Sea-Doo pontoon sold, mainly explained by the late shipments of PWC and 3WV for the same period last fiscal year, the U.S.-Mexico border slowdown affecting ORV deliveries, the softening in industry demand in the International market, and higher sales programs across all product lines except PWC. The decrease was partially offset by a higher volume of Snowmobile and ATV sold, favorable product mix, and favorable pricing across all product lines. The decrease includes a favorable foreign exchange rate variation of $7 million.
Revenues from seasonal products decreased by $152.2 million, or 14.9%, to $868.7 million for the three-month period ended October 31, 2023, compared to $1,020.9 million for the corresponding period ended October 31, 2022. The decrease was primarily attributable to a lower volume of PWC and Sea-Doo pontoon sold, mainly due to late shipments in the three-month period ended October 31, 2022, according to BRP.
Revenues from the marine segment decreased by $12.1 million, or 10.2%, to $106.7 million for the three-month period ended October 31, 2023, compared to $118.8 million for the corresponding period ended October 31, 2022. BRP reported the decrease was mainly due to a decrease in the volume sold and an increase in sales programs. The decrease was partially offset by a favorable product mix and pricing across most product lines. The decrease includes a favorable foreign exchange rate variation of $1 million.
“Importantly, since we became BRP 20 years ago, we have never shied away from investing in our future to build a resilient organization that is geared up to respond to market fluctuations. We remain well-positioned to drive long-term profitable growth thanks to our dedicated team, innovative and diversified product portfolio, and engaged dealer network,” concluded Boisjoli.
The complete financial results are available in the section Quarterly Reports of BRP’s website.