BRP Inc. beat expectations as it reported a third-quarter profit of $127.7-million amid supply chain disruptions that caused a drop in product deliveries.
The maker of Ski-Doos and Sea-Doos said Wednesday its profit amounted to $1.53 per diluted share for the quarter ended Oct. 31, down from a profit of $198.7-million or $2.22 per diluted in the same quarter last year. Revenue totalled $1.6-billion, down from $1.7-billion.
BRP says its normalized earnings per share amounted to $1.48, down from $2.13 a year ago.
Analysts on average had expected an adjusted profit of $1.33 per share, according to financial markets data firm Refinitiv.
“In this challenging environment, our team’s agility allowed us to continue to outpace the powersports industry in retail sales, gain market share and deliver stronger than expected profitability, translating into record results year-to-date,” BRP chief executive Jose Boisjoli said in a statement.
“Our third-quarter results reflect the previously anticipated decrease of product deliveries due to supply chain disruptions.”
In its outlook, BRP said it now expects normalized earnings per diluted share between $9 and $9.75 for its full financial year, compared with its earlier expectations for a result between $8.25 and $9.75. BRP’s normalized earnings per diluted share last year was $5.39.
The company said revenue growth for the year is now expected to be between 25 per cent and 30 per cent, compared with earlier guidance for growth between 27 per cent and 35 per cent.
For its third quarter, BRP said the 5.2 per cent drop in revenue compared with a year ago was primarily because of a lower wholesale volume for year-round and seasonal products because of supply chain disruptions, partially offset by a favourable product mix and pricing.
Revenue from year-round products totalled $736.3-million for the quarter compared with $803-million a year ago, while seasonal product revenue fell to $437.3-million compared with $508.3-million in the same quarter last year.
BRP’s powersports parts, accessories and apparel and OEM engine business saw revenue of $283.9-million, up from $259.9-million a year ago, while marine revenue rose to $136.3-million from $108.4-million a year ago.
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