Powersports vehicles propel BRP to record Q3 revenue

BRP Inc. rode sales of three-wheeled and utility vehicles to record third-quarter revenues, boosting its financial guidance for the third time this year.

The maker of Ski-Doo snowmobiles and Sea-Doo watercraft saw profits jump by 50 per cent year over year to $135.3 million last quarter.

“Our efforts are paying off, and we don’t intend to ease up,” chief executive Jose Boisjoli said.

Much of the Quebec-based company’s $1.64-billion revenue — up nearly 18 per cent from a year earlier and a record for the third quarter — came from sales of its Can-Am side-by-side vehicles. Their revenues grew by more than 30 per cent, more than double the industry rate for side-by-sides, BRP said.

Sales of its three-wheeled roadsters jumped nearly 90 per cent, propelled by the new Can-Am Ryker. With a starting price of $8,500 US, the sporty trike almost halves the price tag of its older cousin, the Can-Am Spyder, in a bid to attract riders who are younger and more cost-conscious than BRP’s typical three-wheel buyer, whose average age is 59.

About 30 per cent of Ryker buyers are women, and 70 per cent are under 55, Boisjoli said.

Snowmobile sales jumped nearly 30 per cent thanks to early snowfall “that has spiked customer interest,” he added.

Marine product sales continued to lag, however, dropping by about $1 million or one per cent as higher boat revenues after a recent acquisition failed to completely make up for fewer outboard engine purchases.

“I would say it was not the best season for our first boat business,” Boisjoli said on a conference call with investors Wednesday.

In August the company closed a deal to acquire a majority stake in Australia’s largest aluminum boat maker, Telwater Pty. Ltd., the firm’s third push into watercraft over the past year and a half after buying Alumacraft Boat Co. and Manitou Pontoon Boats in the summer of 2018.

“Our marine strategy is a mid- to longterm play. And that’s why we’ve decided to invest in companies and become a better integrator of engines within boats,” said chief financial officer Sebastien Martel.

“That improvement in our business will materialize not next year, but in fiscal year 2022 and in fiscal year 2023,” Martel said.