BRP posts 17% year-over-year quarterly growth

BRP is out with some strong financial numbers for its first quarter of 2019, showing 17% growth year-over-year from the period ended 30 April 2018.

Revenues increased by C$197.0m to C$1,333.7m compared with C$1,136.7m for the corresponding period last year. The gains came across the board, according to a BRP earnings release, with revenues up 19% in the US, 12% in Canada and 17% internationally.

The revenue increase was primarily attributable to higher wholesale of Year-Round Products. The increase includes a favourable foreign exchange rate variation of C$13m.

“We have experienced strong retail momentum in North America and Europe with all our sectors trending positively, and we are very satisfied with our year-over-year revenue growth of 17%, even while operating in a dynamic environment. We have continued to outpace the competition, and are positive about the outlook for the rest of this year,” said José Boisjoli, BRP’s president and CEO, in the release.

Gross profit increased by 6.7%, or C$19.0m, to $300.6m for the three-month period, while gross profit margin percentage decreased by 230 basis points to 22.5% primarily due to higher commodity, production and distribution costs and an unfavourable product.

Revenues from Seasonal Products increased by C$25.0m, or 7.1%, resulting primarily from a favourable product mix and price increases in PWC and from a favourable foreign exchange rate variation of C$3m.

North American Seasonal Products retail sales increased on a percentage basis by high-single digits compared with the three-month period ended 30 April 2018.

Revenues from Powersports PAC and OEM Engines increased by CAN$29.0m, some 18.6%, due mainly to a higher volume of 3WV, SSV and PWC accessories and a higher volume of snowmobile and PWC parts.