BRP revenues fall

Bombardier Recreational Products (BRP)’s revenues have declined by Canadian $241.5 million or 8.9% compared to the same period last year.

The organisation saw revenues of $2,467.8 million, with North American quarterly retail sales up for SSV, ATV and Snowmobile, offset by lower sales of PWC, 3WV and Sea-Doo Pontoon craft.

“Our team’s focus on operational excellence enabled us to improve gross margin despite reduced volumes,” said José Boisjoli, president and CEO of BRP. “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.”

However, he said that there has been a softening demand, particularly in international markets and production and deliveries have been adjusted to manage network inventory.

The Company’s 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 ended October 31 2022.

Supply chain improvements have allowed the company to continue with its production efficiencies, leading to an increase in the profit margin percentage for the three-month period ended October 31 2023 compared to the same period last year.

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.

Revenues from Powersports PA&A and OEM Engines increased by $16.5 million, or 5.5%, to $314.5 million for the three-month period ended October 31 2023 compared to $298 million for the same period in 2022.

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.

The Company’s North American retail sales for Marine Products decreased by 30% compared to the three-month period ended October 31, 2022.

Gross profit decreased by $27.3 million, or 4.2%, to $627.4 million for the three-month period ended October 31, 2023, compared to $654.7 million for the three-month period ended October 31, 2022.