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    BRP Revenue, Gross Profit Up in Q3

    Posted by Emily Hare
    on Wednesday, December 14, 2016

     BRP Inc. reported its financial results for the three- and nine-month periods ended October 31, 2016, and the report includes increases in revenue and gross profit over the previous year. 

    "I am proud of our excellent third-quarter results for fiscal 2017. We are on track with our plan despite the global context of political and economic uncertainties and a competitive market," said José Boisjoli, president and CEO of BRP. "We ended the Sea-Doo season on a very strong note with a record market share worldwide. In addition, our off-road business is providing solid retail numbers around the world, led by the Can-Am Defender and Maverick X3 side-by-side vehicles and mid-cc ATVs."

    Here are the highlights of the report:

    • Revenues increased by $70.0 million, or 6.9%, to $1,080.2 million for the three-month period ended October 31, 2016, compared with $1,010.2 million for the corresponding period ended October 31, 2015. The revenue increase was mainly due to higher wholesale in Year-Round Products, partially offset by lower wholesale in Seasonal Products.
    • Gross profit increased by $61.2 million, or 24.9%, to $307.2 million for the three-month period ended October 31, 2016, compared with $246.0 million for the corresponding period ended October 31, 2015. The gross profit increase includes a favourable foreign exchange rate variation of $14 million. Gross profit margin percentage increased by 400 basis points to 28.4% from 24.4% for the three-month period ended October 31, 2015. The increase in gross profit margin percentage was primarily due to a favourable product mix in SSV and PWC, general price increases and a favourable foreign exchange variation.
    • Revenues increased by $145.8 million, or 5.4%, to $2,866.2 million for the nine-month period ended October 31, 2016, compared with $2,720.4 million for the corresponding period ended October 31, 2015. The revenue increase was primarily attributable to higher wholesale of Year-Round Products and a favourable foreign exchange rate variation of $60 million mainly due to the strengthening of the U.S. dollar and the euro against the Canadian dollar, partially offset by lower wholesale of Seasonal Products.
    • Gross profit increased by $45.0 million, or 7.2%, to $673.3 million for the nine-month period ended October 31, 2016, compared with $628.3 million for the corresponding period ended October 31, 2015. Gross profit margin percentage increased by 40 basis points to 23.5% from 23.1% for the nine-month period ended October 31, 2015. The increase in gross profit margin percentage was primarily due to a favourable product mix in Year-Round Products and PWC as well as general price increases, partially offset by higher sales programs costs and an unfavourable foreign exchange variation.

    "We began production of two new platforms in the past quarter — Ski-Doo REV Gen4 and Can-Am Maverick X3 - and our team's rigorous execution ensured that we delivered these highly anticipated units to the market as intended," Boisjoli added. "I believe that our product, geographic and manufacturing diversification continues to place BRP in a favourable position to achieve our objectives."

    All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com.

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