14 • July 2023 • Powersports Business
FINANCE www . PowersportsBusiness . com
BRP reports positive Q1-FY24 results
BRP Inc . recently reported its financial results for its first quarter of fiscal year ’ 24 ( FY24 ), which ended April 30 , 2023 , with record revenues and solid retail sales growth in North America . The company also reaffirmed its guidance for FY24 of 9 % to 12 % growth over FY23 . ( Editor ’ s note : Financial information is in Canadian dollars unless otherwise noted .)
“ Fiscal 2024 is off to a good start for BRP . We delivered a solid first-quarter performance with record revenue for that period … Once again , we outpaced the North American Powersports industry thanks to sustained consumer demand for our strong and well-diversified product portfolio ,” says José Boisjoli , president and CEO of BRP .
“ Driven by a regular flow of new product introductions , and with many others in their early stage of growth , the future is very promising for BRP . Over the short
term , our focus is on executing and optimizing efficiencies , and we remain on pace to deliver on our financial guidance for this year ,” Boisjoli concludes .
FIRST QUARTER RESULTS Strong deliveries , aided by improvements in the supply chain and inflationary environment , allowed the company to deliver a solid first quarter , outperforming the results of the first quarter of Fiscal 2023 . The demand for BRP products continued to be healthy , as evidenced by the increase of 3 % in the company ’ s North American retail sales for powersports products during the first quarter of FY24 compared to the same period last year .
The increase in revenues for the threemonth period ended April 30 , 2023 , is mainly explained by high deliveries of units for the upcoming retail season . During that period , BRP experienced strong PWC , Sea-
Doo pontoon , and SxS ( SSV ), retail sales . The company says the supply chain has gradually returned to a more stable level , resulting in production efficiencies and an increase in gross profit margin compared to the same period last year .
REVENUES Revenues increased by $ 620.1 million ($ 461 million USD ), or 34.3 %, to $ 2,429.4 million ($ 1.8 billion USD ) for the three-month period , compared to $ 1,809.3 million ($ 1.3 billion USD ) for the corresponding period of 2022 . The increase in revenue was primarily due to a higher wholesale volume of SSV , PWC , and three-wheelers ( 3WV ) as well as a favorable product mix and favorable pricing across all product lines , partially offset by higher sales programs . The increase includes a favorable foreign exchange rate variation of $ 94.8 million .
DEALER FINANCIAL SNAPSHOT
NORTH AMERICAN RETAIL SALES BRP ’ s North American retail sales for powersports products increased by 3 % for the three-month period of ’ 23 ( Q1−24 ), compared to the three-month period of 2022 ( Q1−23 ). The increase was mainly driven by an increase in PWC and SSV sales .
Year-Round Products retail sales decreased on a percentage basis in the lowsingle digits compared to the first three months of 2022 .
Seasonal Products retail sales increased on a percentage basis in the mid-single digits compared to Q1−23 , when excluding pontoons .
Marine Products retail sales decreased by 39 % compared to the three-month period of ’ 22 as a result of lower product availability .
NORTHWEST �5.4 % Parts Department �20.0 % Service Department �23.3 % Major Units �21.2 % Overall
WEST -0.7 % Parts Department
�4.8 % Service Department -4.6 % Major Units -3.3 % Overall
UNITED STATES �1.4 % Parts Department �10.5 % Service Department �8.7 % Major Units �8.3 % Overall
MIDWEST �5.3 % Parts Department �11.9 % Service Department �12.7 % Major Units �12.1 % Overall
SOUTH -0.9 % Parts Department
�10.3 % Service Department �10.4 % Major Units �9.6 % Overall
NORTHEAST �1.8 % Parts Department �12.3 % Service Department �10.8 % Major Units �10.1 % Overall
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MAY 2023 VS . MAY 2022
According to composite data from more than 1,700 dealers in the U . S . that use the Lightspeed DMS , dealerships saw a combined revenue growth of 8.3 % in May 2023 versus the year ago month . And on average , the parts , service and sales departments were up . In the Northwest , parts were up 5.4 %, followed by the Midwest , reporting a growth of 5.3 %. The South ( 0.9 % decrease ) and the West ( 0.7 % decrease ) were down in the parts department . The service department was signifi cantly up for every region .
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The Northwest reported the largest increase of 20.0 %. The Midwest , Northeast and South hovered around a 10 % increase , and the West was up 4.8 %. The average dealership saw a growth of 8.7 % in new and preowned sales in May . The Northwest led this growth with an increase of 23.3 %. The West was the only region to report a decline in sales , reporting a 4.6 % decr ease . Combined revenue was up for every region but the West , reporting a 3.3 % decrease . Similar to the service and sales reports , the Northwest reported a 21.2 % combined growth , followed by the Midwest , Northeast and |
South , reporting around 10 % of combined growth .
PARTS SALES Parts sales revenue was up at 859 dealerships and down at 760 .
SERVICE SALES Service revenue increased at 1016 and decreased at 573 dealerships .
MAJOR UNIT SALES A total of 904 dealerships were up and 573 were down .
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FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : cdkglobal . com / dataservices
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