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10 • January 2025 • Powersports Business

FINANCE www . PowersportsBusiness . com

BRP reports Q3 results , sales drop in North America

BRP Inc . recently reported its financial results for the three- and nine-month periods ended October 31 , 2024 . All financial information is in Canadian dollars unless otherwise noted . The complete financial results are available on the Quarterly Reports section of BRP ’ s website .
“ Our disciplined execution allowed us to deliver results above expectations despite the industry ’ s macroeconomic context and promotional intensity ,” says José Boisjoli , president and CEO of BRP . “ We were the first powersports OEM to prioritize network inventory depletion , and we are on track to deliver on our objective to reduce levels by 15 % to 20 % by the end of the current fiscal year . Driven by our second-to-none product line-ups , our solid dealer network and improved inventory position , we are uniquely placed to capture opportunities
when the market rebounds .” Boisjoli says the company has doubled its core powersports activities to protect long-term growth and solidify its market share . “ We are investing to continue pushing technologies and innovation , and consumers can expect an exciting pipeline of new products in the coming years ,” he concludes .
THIRD-QUARTER RESULTS In the context of softer demand and BRP ’ s focus on reducing network inventory levels during the three months ending October 31 , 2024 , revenues declined compared to last year . The decrease in the volume of shipments , the higher promotional intensity and the decreased leverage of fixed costs due to reduced production have led to a decrease in the gross profit
margin compared to last year . Favorable pricing , production efficiencies and optimized distribution costs partially offset this decrease .
BRP ’ s North American quarterly retail sales were down 11 % in Q3 . The decrease is
Source : BRP
mainly explained by softer demand for its Seasonal and Year-Round Products .
REVENUES Revenues decreased by $ 415.3 million , or
DEALER FINANCIAL SNAPSHOT

NORTHWEST -0.8 % Parts Department -9.0 % Service Department -6.0 % Major Units -5.8 % Overall

WEST -5.5 % Parts Department -5.8 % Service Department -4.6 % Major Units -4.8 % Overall

MIDWEST -10.5 % Parts Department -5.5 % Service Department -8.8 % Major Units -8.4 % Overall

NORTHEAST -3.9 % Parts Department -2.4 % Service Department 1.3 % Major Units 0.4 % Overall

UNITED STATES -3.9 % Parts Department -3.1 % Service Department -0.7 % Major Units -1.3 % Overall

SOUTH

0.7 % Parts Department 1.1 % Service Department 5.6 % Major Units 4.8 % Overall
NOVEMBER 2024 VS . NOVEMBER 2023
Dealers were down an average of 1.3 % in combined revenue in November , according to composite data from more than 1,700 U . S . dealers that use the Lightspeed DMS . The South was the only region to report an increase in parts revenue , up 0.7 %. The Midwest was down 10.5 % in the parts department , followed by the West , down 5.5 %, then the Northeast , down 3.9 %. The average dealer was down 3.1 % in service . The Northwest was down the most signifi cantly in the service department , reporting
a drop of 9.0 % in revenue . The West , down 5.8 %, and the Midwest , down 5.5 %, followed . The South was again the only region to report an increase in service revenue , up 1.1 %. In the sales department , the Northeast was up 1.3 % and the South was up 5.6 % in revenue . The Midwest was down 8.8 % in sales , followed by the Northeast , down 6.0 %. Combining reports from each department , the South was up 4.8 % in November . The Northeast was also up in combined revenue , reporting an increase of 0.4 %. The Midwest reported the most signifi cant decrease in combined revenue , down 8.4 %.
PARTS SALES Parts sales revenue was up at 844 dealerships and down at 977 .
SERVICE SALES Service revenue was up at 853 dealerships and down at 971 .
MAJOR UNIT SALES A total of 770 dealerships were up and 865 were down .
FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : lightspeeddms . com