BRP announced the financial results of its fiscal 2025 third quarter.
Revenues decreased by CAD$415.3 million ($293.4 million), or 17.5%, to CAD$1.955 billion ($1.382 billion) for the three months ended Oct. 31, compared with the CAD$2.371 billion ($1.675 billion) for the prior-year period. The decrease in revenues was primarily due to a lower volume sold across all product lines because of softer demand and continued focus on reducing network inventory levels, as well as higher sales programs, a company statement said.
“Our disciplined execution allowed us to deliver results above expectations despite the macroeconomic context and the promotional intensity in the industry,” CEO José Boisjoli said in the statement. “We were the first powersports OEM to prioritize network inventory depletion, and we are on track to deliver on our objective to reduce levels by 15% to 20% by the end of the current fiscal year.”
North American quarterly retail sales were down 11% for the quarter, mainly due to softer demand for seasonal and year-round products.
Gross profit decreased by CAD$213 million ($150.5 million), or 33.1%, to CAD$430 million ($304 million) for the period, compared with CAD$643 million ($454.3 million) for the same period the year before. Gross profit margin percentage decreased by 510 basis points to 22% from 27.1%.
Net income decreased by CAD$62.8 million ($44.4 million), or 69.7%, to CAD$27.3 million ($19.3 million), compared with CAD$90.1 million ($63.7 million) year-over-year.
BRP reaffirmed its full-year-end guidance adjusted, for marine discontinued operations, with revenues between CAD$7.6 billion ($5.4 billion) and CAD$7.8 billion ($5.5 billion).
