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BRP Inc. DOO-T enjoyed a 42 per cent year-over-year jump in profits last quarter on the back of higher snowmobile and side-by-side vehicle sales – possible in part due to a smoother supply chain.

The better-than-expected earnings drove the Sea-Doo and Ski-Doo maker to near-record second-quarter retail sales, the company said, its performance eclipsed only by summer 2020 when outdoor goods saw a boost due to the COVID-19 pandemic.

“This year we are getting a huge benefit from a better supply chain,” said chief financial officer Sebastien Martel on a call with analysts Thursday.

The results came after BRP introduced a slew of new and updated recreation vehicles as it guns for bigger market share, particularly for premium power-sport products, the company’s fastest growing area.

The novelties range from an Apple touch screen on its three-wheeled Can-Am Spyder motorcycle to its most expensive off-road vehicle yet, a new side-by-side that costs between $44,000 and $54,800, depending on the options.

CEO Jose Boisjoli said the average household income of the company’s customer base in North America sits at $165,000 – 40 per cent higher than four years ago – shaping BRP’s marketing strategy.

Lower marine sales weighted on profit margins, due largely to since-resolved supply chain issues with its new Manitou pontoon boat. The problem was one of several that led BRP to lower its forecast for the segment, which does not include personal watercraft such as Sea-Doos, to revenue growth of between five and 10 per cent from the previous prediction of 35 to 40 per cent.

“When you have a combination of interest rates going up in a summer where weather is so-so, some customers preferred to delay their purchase,” said CEO Jose Boisjoli, referring to heavy rainfall in parts of North America over the past three months. Many boat buyers finance the purchase with 15-to-20-year payment plans, making interest a key concern, he noted.

Nonetheless, the Valcourt, Que.-based company inched up its profit forecast for the year, predicting normalized earnings per share of between $12.35 and $12.85, up from $12.35 to $12.75.

It projected slightly lower revenue growth of between seven and 10 per cent compared with an earlier guidance of nine to 12 per cent.

On Thursday, BRP reported net income of $338.7-million for the three months ended July 31, up from $237.7-million a year earlier.

Revenue for the quarter rose 14 per cent to $2.78-billion from $2.44-billion last year.

On an adjusted basis, earnings rose to $3.21 per share in BRP’s most recent quarter from $2.94 per share the year before. The result topped expectations of about $$2.98, according to several analyst notes.

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