VALCOURT, Quebec - BRP is crediting the introduction of new models including the Spyder ST and the Maverick SSV (see image) and favorable exchange rates for a 27.4 percent increase in revenue from the Can-Am brand in BRP’s first-ever quarter as a public company, which ended April 30.
Revenues for ATVs, SSVs and Spyder three-wheelers, classified as year-round products, increased by $87 million (US$85.5 million), or, to $404.7 million (US$397.2 million) for the first quarter, up from $317.7 million (US$312.6 million in the corresponding period last year).
"We are pleased to report our first results as a public company and we take this opportunity to welcome our new shareholders to BRP. Our first quarter puts us on track for a strong performance this year," said president and CEO José Boisjoli. "Our revenues from our year-round products increased by 27 percent during the quarter, led by the sales of our Can-Am Spyder ST and Maverick side-by-side vehicle.”
Revenue for the first quarter was $804.3 million (US$791 million), an increase of 5.5 percent or $41.6 million (US$40.9 million) compared to the first quarter of FY13. Revenue increased by 12 percent when excluding the impact of the exit of the sport boat business in the fall 2012.
That led to a $44 million (US$43.2 million) decrease in revenue for seasonal products – Ski-Doo and Lynx snowmobiles and Sea-Doo watercraft – for an 18.5 percent or $46.9 million (US$46.1 million) decline in revenue, to $206.7 million (US$203.2 million) for the quarter, compared with $253.6 million (US$249.3 million) for the corresponding period last year.
PG&A revenue was up $1.7 million (US$1.6 million), or 1.7 percent, up to $100 million (US$98.3 million) for the quarter, up from $98.3 million (US$966.5 million) for the corresponding period last year.
Revenue from Rotax engines and Evinrude outboard engines remained stable at $92.9 million (US$91.3 million) for the first quarter, compared with $93.1 million (US$91.5 million) for the corresponding period last year.
The company received “strong spring orders” of snowmobiles to be delivered during the second half of the year, Boisjoli said, in part because of the new Rotax 900 ACE snowmobile engine launched in the first quarter.
The results include a favorable foreign exchange rate variation of $13 million (US$12.7 million) mainly related to the strengthening of the U.S. dollar against the Canadian dollar. (One U.S. dollar was worth 98 cents Canadian at press time).
The company is looking abroad for growth, Boisjoli said: "International growth is at the heart of our business strategy; we are pleased with our 8 percent revenue increase from the International market, especially given the challenging economic situation in Western Europe. The construction of our second Mexican manufacturing site in Querétaro, is on schedule.”
The complete financial results are available at www.sedar.com.
Posted by Holly Wagner