Higher revenues, profits and earnings driven by sales increases in both seasonal and year-round products
Quebec, Canada-based BRP Inc released third quarter results for its 2019 fiscal year today, celebrating what president and CEO José Boisjoli described as the company’s best third quarter ever with year-over-year increases in total revenues, gross profits, net incomes and EBITA.
The company reported total net revenues of $1.64bn for the period ended October 31, 2019, representing a jump of 17.9% or $249.4m over the $1.39bn reported for the third quarter of 2018. The increase was attributed to 21% higher sales volumes of both year-round and seasonal products, including strong sales of ATVs and snowmobiles. Gross profit increased by 23.9% to $441.9m for the quarter, while continuing product investments drove operating expenses for the period up by 17.1% to $223.9m.
Net incomes for the quarter were reported as $135.3m, marking a YOY increase of $45.1m over the $90.2m reported for Q3 2018, while normalised EBITA was reported as $268.2m, marking an increase of $65.0m or 32% over the $203.2m reported for the previous Q3.
“We delivered once again a solid financial performance and our best third quarter ever,” said Boisjoli. “Our industry is performing well globally, and we continue to outpace it with double digit growth. As we look ahead, our strong third quarter results allow us to raise the lower-end of the guidance for our full year normalised EPS range, with expected growth of 19% to 23%.”
By segment, revenues for year-round products increased to $750.0m for the quarter for a YOY gain of 28.9%, on the strength of strong sales of BRP’s Can-Am SSV side-by-side product and its Can-Am Ryker three-wheel motorcycle. Revenues from seasonal products, including PWC and snowmobiles, increased to $554.8m for the quarter for a 13.0% gain while the company’s Powersports PAC and OEM engines division recorded $226.6m in revenues for a 12.1% hike over the third quarter of 2018.
Revenues from BRP’s marine segment decreased by $3.4m, or 2.3%, to $142.4m for the quarter due to a lower volume of outboard engines sold, with the company noting that North American outboard engine retail sales decreased on a percentage basis in the low-teens range compared with the three-month period ended October 31, 2018. The impact of this decline for the segment was partially offset by additional revenues from Telwater, following BRP’s acquisition of the Australian boatbuilder in May.
For the nine months ended October 31, 2019, BRP’s marine segment is tracking ahead of 2018 sales, posting revenues of $407.1m for the current year compared against $364.2m reported for the first nine months of FY 2018.