VALCOURT, Quebec - BRP Inc. management is revved up about its recent financial results headed into the OEM’s dealer meeting in Orlando, Fla., this weekend.
"I'm looking forward to welcoming over 2,000 participants from 99 countries as we begin our semi-annual dealer meeting in Orlando, Florida in three days. This event will be another key opportunity to showcase our leadership in the powersports industry as we introduce new Sea-Doo and Can-Am models for the 2014 season," said president and CEO José Boisjoli, noting revenue was up 2 percent over the same quarter last year.
NOTE: For the financial report below, all information is in Canadian dollars unless otherwise noted.
Revenue from year-round products increased by $20.9 million, or 8.1 percent, to $278.1 million for the three-month period ended July 31, up from $257.2 million for the corresponding period last year. The increase is primarily due to higher worldwide sales of both ATV and side-by-side vehicles, partially offset by additional sales programs.
Revenues from parts, garments and accessories increased by $10 million, or 9.4 percent, to $116.3 million for the quarter. The increase is primarily due to increased sales of year-round products and a favorable foreign exchange rate variation of $2 million, the company noted.
Leaving the sport boat segment in its wake, BRP saw revenues from seasonal products decrease by $15.5 million, or 9.9 percent, to $140.6 million for the quarter, compared with $156.1 million for the corresponding period last year. The decrease in revenues is attributable to the reduction of $25 million of revenues following the company's decision, announced in the third quarter of 2012, to exit the sport boat business.
Excluding the exit of the sport boat business, revenues would have increased by $9.5 million or 7.2 percent. The company attributes the increase to higher volume of products sold, partially offset by additional sales programs put in place to support retail in North America due to the late arrival of spring and generally unfavorable weather conditions.
Lower sales of outboard motors drove a decrease of $2.6 million, or 2.9 percent, in revenues from propulsion systems, to $85.9 million for the quarter. The decrease in revenues is partially offset by a favorable foreign exchange rate variation of $3 million.
Gross profit decreased by $7.0 million or 4.7% of revenues, to $142.6 million for the three-month period ended July 31, 2013, down from $149.6 million for the corresponding period last year. The gross profit margin decreased by 160 basis points from 24.6% for the three-month period ended July 31, 2012.
The decrease in gross profit margin was primarily due to increased sales program costs and to additional costs related to the transfer of PWC manufacturing to the Querétaro, Mexico facility. The decrease was partially offset by favourable product mix, higher selling prices and by a favourable foreign exchange rate variation of $6 million, BRP stated. (continued)