Ski-Doo and Sea-Doo maker BRP breaks another revenue record

BRP Inc posted record revenue.

Bombardier Recreational Products Inc. posted a record $3.07 billion in revenue for the fourth quarter, boosting the Ski-Doo and Sea-Doo maker’s efforts to move past supply chain issues.

Sales of BRP ’s recreational machines rose 21 per cent compared to the same period last year. The Valcourt, Que.-based company reported net income of $365.1 million in the three months ending Jan. 31, a 74 per cent increase from the same period in 2022.

“We achieved record results for the year with revenues exceeding $10 billion for the first time ever,” chief executive José Boisjoli said in a March 23 press release. “These achievements speak volumes about the dedication and relentless work of our team, as well as the strength of our product portfolio.”

In the third quarter, revenue soared to a record $2.7 billion, a 71 per cent increase from a year earlier. Growth was driven by the late shipment of personal watercraft, the introduction of the Sea-Doo Pontoon, and the fact that the company shipped more snowmobiles than last year. BRP was able to overcome supply chain difficulties that had been hampering its ability to keep up with demand.

The company repurchased $356-million worth of its own shares during the 2023 fiscal year.

BRP is making a push toward electric vehicles, with plans to release two electric snowmobile models in time for the winter of 2024. They will need to compete with Taiga Motors Corp. , which last year became the first company to ship an electric snowmobile, but BRP has enough assets “to be very competitive in any industry,” Boisjoli said in an interview earlier this month.

He added that it has proven challenging to electrify off-road powersport vehicles. A smaller battery results in a lighter snowmobile, with less range, while a heavier battery results in a heavier snowmobile, with more range, he said. The company plans to make 50 per cent of their product lines electric by 2035.

“Heading into fiscal 2024, despite macro concerns, we expect to continue our growth,” said Boisjoli, due to “BRP’s proven reputation for product innovation, industry-leading brands and solid dealer network.”

The company expects revenue to grow between nine and 12 per cent in fiscal year 2024 and expects normalized diluted earnings per share to increase between two and six per cent.

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