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    BRP Reports Record Revenues in Q1

    Posted by Emily Hare
    on Thursday, June 01, 2017

     Bombardier Recreational Products (BRP) just released its financial report for the first quarter of fiscal year 2018, and it includes some good news for the powersports company. In the three-month period that ended April 30, 2017, BRP experienced record revenues in the amount of $956 million (CAD), a nearly 3% increase over last year's first quarter. 

    “I am very pleased with BRP’s performance in the start of this new fiscal year, with excellent first quarter revenues and profitability," said José Boisjoli, BRP's president and CEO. "Our side-by-side business continues on its positive trend with great demand for the Can-Am Defender and Maverick X3 vehicles (SSV). Even though the Sea-Doo season is only just starting, we can see a good momentum in the watercraft business. Our Parts, Accessories and Clothing business has also performed very well this quarter, due to good end-of-season snowmobile parts sales and to strong interest in our new SSV accessories.”

    The revenue increase was primarily attributable to higher wholesale of Seasonal Products and PAC. Revenues from Seasonal Products increased by $19.7 million, or 6.9%, to $306.5 million for the three-month period ended April 30, 2017, compared with $286.8 million for the corresponding period ended April 30, 2016. The increase resulted primarily from a higher volume and a favorable mix of PWC sold. Revenues from PAC increased by $21.9 million, or 16.6%, to $153.7 million for the three-month period ended April 30, 2017, compared with $131.8 million for the corresponding period ended April 30, 2016. The increase was mainly attributable to a higher volume of SSV PAC sold following the introduction of the Can-Am Maverick X3, and to a higher volume of snowmobile PAC sold.

    “I consider that we are in an excellent position to reach our strategic objectives as the entire team remains aligned towards their realization. We are introducing today our new Can-Am off-road line-up with several innovations, and I am sure it will be well received by the market,” said Boisjoli. “What’s more, snowmobile spring orders from dealers were higher than planned. All this, combined with the excellent results from the first quarter, have led us to increase our guidance.”

    BRP's gross profits in Q1 equaled $207 million, a nearly 7% increase compared to the previous year.The increase in gross profit margin percentage was primarily due to a favorable product mix in SSV and a favorable foreign exchange rate variation, partially offset by a lower volume of Spyder vehicles and higher production costs. Operating expenses decreased by $20.9 million, or 11.1%, to $166.7 million for the three-month period ended April 30, 2017, compared with $187.6 million for the three-month period ended April 30, 2016.

    In closing, Boisjoli added: “The Board of Directors approved yesterday the declaration of a quarterly dividend and the launch of a substantial issuer bid. These decisions reflect our solid financial position, strong ongoing cashflow generation ability and confidence in BRP’s fundamental value. We are proud to be in a position to return capital to all shareholders while maintaining our ability to pursue our growth opportunities.”   

    To see the complete financial report, click here.

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