Brunswick’s net sales dropped in the first quarter of 2023. For the first quarter of 2024, the Corporation’s sales were $1,365 million, down from $1,743.6 million in the first quarter of 2023.
The drop has been put down to continued measured wholesale ordering by dealers and OEMs, coupled with higher discounts in some business segments, that were only partially offset by annual price increases.
“Our businesses delivered solid results, consistent with expectations, as our continued market share gains, benefits from a wealth of outstanding new products, and comprehensive cost control measures resulted in financial performance in-line with estimates, despite continued economic uncertainty,” said CEO David Foulkes.
“Marine dealers, manufacturers and retailers continue to demonstrate caution with early-season wholesale ordering patterns, resulting in reduced shipment rates across our product businesses as compared to the first quarter of 2023 in which pipelines were being filled.”
Normalised inventory levels
The corporation’s propulsion business delivered lower sales and operating earnings versus a record first quarter in 2023 but the Mercury brand continued to make gains, particularly in the 150hp plus categories.
The engine parts and accessories business was slightly down compared to 2023 but increased over the prior quarter.
The corporation anticipates normalised inventory levels across the dealer network and continued strong boating participation should contribute to year-on-year earnings growth for the remainder of the year.
Navico Group had lower sales and operating earnings versus the first quarter of 2023 but has since delivered sales growth.
In the boat business, Boston Whaler and Sea Ray sales were strong, but overall sales and operating earnings were below 2023, consistent with lower planned production levels.
Freedom Boat Club has continued to grow with increased membership. The Club now has 413 locations around the world.
The corporation is anticipating sales will amount to around $6 to $6.2 billion in 2024.
