8 • May 2024 • Powersports Business
FINANCE www . PowersportsBusiness . com
BRP increases retail sales 8 % in FY24 results
BRP Inc . reported its financial results for the three-month and twelve-month periods ended January 31 , 2024 . The top line story is that the company continued to gain market share and increased retail sales in North America by 8 % compared to the same period last year , while the industry only saw an increase of 1 %.
José Boisjoli , president and CEO of BRP comments : “ Fiscal 2024 was marked by market share gains in the North American Powersports industry , successful product launches and continued progress on our strategic initiatives , leading to record revenues and free cash flow .
“ Our performance in the side-by-side category was very impressive , as we reached a market share of 30 % one year ahead of plan . I sincerely thank our teams for their commitment to our success . Our fourth quarter
results ended within our guidance despite unfavorable winter conditions affecting our snow-related business ,” he continues . “ Heading into fiscal 2025 , we are focused on proactively managing network inventory to maintain our dealer value proposition . We expect to strengthen our position as the OEM of choice , driven by our diversified product portfolio , as well as our strong business fundamentals . We are also excited about the launch of our new electric Can- Am motorcycles later this year which should further expand our addressable market .”
QUARTERLY OUTLOOK Given its focus on managing network inventory levels , the company expects Q1 Fiscal 2025 EBITDA to be down approximately 35 % versus the same three-month period last fiscal year .
The company ’ s Q4 2024 was marked by a decrease in the volume of shipments and revenues compared to Q4 2023 . The results of the fourth quarter of this fiscal year were mainly driven by a decrease in seasonal products deliveries , as the fourth quarter of this fiscal year compares unfavorably to a strong fourth quarter last fiscal year , when seasonal products shipments were completed after peak retail season due to supply chain issues last year .
Revenues were also negatively impacted by higher sales incentives and unfavorable winter conditions , primarily in North America , where the short-riding season reduced the demand for PA & A compared to the fourth quarter of the last fiscal year .
BRP ’ s North American quarterly retail sales were down for all product lines except SSVs ( ATVs / UTVs ), resulting in an overall
DEALER FINANCIAL SNAPSHOT decrease in retail when compared to the same period last year . While the company says it has improved production efficiencies in its supply chain , the reduction in volume and increase in sales programs have led to a decrease in the profit margin in Q4 , compared to last year .
REVENUES Revenues decreased by $ 384.5 million ( CDN ), or 12.5 %, to $ 2.7 billion compared to the $ 3 billion for the corresponding period in 2023 . The revenue decrease was primarily due to a lower volume across most product lines , explained by late shipments of seasonal products for the same period last fiscal year , softening consumer demand , primarily in international markets , higher sales programs across most product lines and unfavorable winter conditions ,
NORTHWEST -10.2 % Parts Department -10.6 % Service Department -9.4 % Major Units -9.6 % Overall
WEST -7.4 % Parts Department -3.9 % Service Department -9.9 % Major Units -9.0 % Overall
UNITED STATES -12.8 % Parts Department -4.1 % Service Department -7.5 % Major Units -7.5 % Overall
MIDWEST -15.6 % Parts Department -3.0 % Service Department -3.4 % Major Units -4.1 % Overall
SOUTH -16.7 % Parts Department -4.2 % Service Department -8.8 % Major Units -8.8 % Overall
NORTHEAST -12.3 % Parts Department -2.0 % Service Department -5.4 % Major Units -5.6 % Overall
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MARCH 2024 VS . MARCH 2023
The average dealership was down 7.5 % in March compared to the year ago month according to composite data from more than 1,700 dealers in the U . S . that use the Lightspeed DMS . In the parts department , the South was down an average of 16.7 % followed by the Midwest , reporting a drop in parts revenue of 15.6 %. The average dealer was down 12.8 % in parts . In the service department , every region was down in March . The Northeast reported the least signifi cant
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drop of 2.0 % in service , followed by the Midwest , down 3.0 %. The Northwest reported the largest decrease in service revenue of 10.6 %. The average dealer was down 7.5 % in the sales department . The West reported a drop of 9.9 % and the Northwest reported a drop of 9.4 % in sales revenue . The Midwest shared the lowest decrease in sales of 3.4 %. The Midwest also reported the least signifi cant drop in revenue when averaging all three departments . The Northeast followed , reporting a decrease of 5.6 % in combined revenue . |
PARTS SALES Parts sales revenue was up at 569 dealerships and down at 933 .
SERVICE SALES Service revenue was up at 788 dealerships and down at 902 .
MAJOR UNIT SALES A total of 627 dealerships were up and 935 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 : lightspeeddms . com
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