Strong performance of marine division contributed toward solid third quarter for Canadian recreational equipment manufacturer

Strong North American demand for personal watercraft contributed toward BRP’s record Q3 results

Strong North American demand for personal watercraft contributed toward BRP’s record Q3 results

Quebec-based BRP reported revenues of C$1,394.2m and net income of C$90.2m for its third quarter of 2018, marking continued strong growth for the manufacturer of Sea-Doo personal watercraft and Evinrude outboard engines.

The company’s revenues for the quarter ended October 31, 2018 represent a year-over-year gain of $167.7m or 13.7% for the period, producing a $20.2m jump in net income. Gross profit increased by $36.9m for the quarter, representing YOY growth of 11.5% while diluted earnings-per-share were reported at $0.92, representing an increase of $0.25 per share.

Earnings were split among year-round products, powersports PAC, OEM engines and seasonal products, with marine accounting for approximately 10% of total revenues. For the year to date, revenues from the marine division increased by $29.5m, or 25.4%, to $145.8m for the three-month period ended October 31, 2018 compared with $116.3m for the corresponding period in 2017.

The increase was attributed to the acquisition of the Alumacraft and Triton boat business, and partially offset by a lower volume of outboard engines sold. North American outboard engine retail sales decreased on a percentage basis in the low-teen range compared with the three-month period ended October 31, 2017.

“We posted another record quarter with sustained demand for our products,” said BRP president and CEO, José Boisjoli. “Consumer demand for BRP’s powersports line-up was also strong this quarter with retail up by more than 25% for both side-by-side vehicles and personal watercraft in North America. This performance is a testament to our relentless focus on executing on our strategic priorities and on bringing the most innovative products to market.”