BRP powers on despite engine trouble

Record results for recreational vehicle manufacturer although engines go backwards.

Canadian recreational vehicle manufacturer BRP returned record results again for the financial year ending 31 January, 2018 despite a drop-off in sales for its propulsion products.

BRP manufactures a range of outdoor products including the Can-Am off-road vehicles, Ski-Doo snowmobiles, Sea-Doo PWCs and Evinrude outboards.

Total revenues for the company increased by $315 million, or 7.6%, to $4.49 billion for the 12 months to the end of January 2018, compared with $4.17 billion for the previous year (all figures are in Canadian dollars). Gross profit increased by $58.6 million, or 5.8%, to $1.07 billion compared with just over $1 billion the previous year. The gross profit increase includes an unfavourable foreign exchange rate variation of $11 million.

While sales were up overall, revenue in the propulsion segment which includes Evinrude outboards fell by $22 million or 5.2% to $395 million for the year. Most of this fall was recorded in the final three months of the year when sales fell by 19.1% to $90 million.

BRP said the decrease was mainly attributable to a lower volume of motorcycle engines sold and to a lower wholesale of outboard engines.

“I am very pleased with our excellent year-end results; we set a strong growth objective and we surpassed it once again with record results,” said José Boisjoli, president and CEO. “Our plan was well-executed worldwide by our employees and yielded impressive results, in particular with our retail momentum that outpaced both the competition and the industries in all our markets.”

“Model year 2018 products, including two new Can-Am side-by-side platforms and a cutting-edge Sea-Doo platform, were well-received by our consumers, dealers and the media.”

In Australia and New Zealand, retail sales for Sea-Doo were up by over 30% for the fourth quarter compared to the same period last year.

For the coming year, BRP expects total revenues to grow by between 5% and 8% but forecasts no respite in the propulsion market where sales are expected drop by between 4% to 8% to $386 million.