Powersports product specialist BRP on Friday reported halving profit and flat revenue in the first quarter of its fiscal year 2020 compared to the same period a year ago.
The net profit of the Valcourt-based company thus fell from $244.4 million to $121 million in the first quarter of 2023, which ended on April 30.
Per diluted share, earnings also fell significantly from $2.79 per share to $1.49, a decline of $1.33.
Inflation, supply chain disruption and limited inability to meet consumer demand are believed to be responsible for the drop, the company says.
“These supply chain disruptions, which are expected to persist through fiscal year 2023, have also resulted in an increase in the number of units essentially completed awaiting missing parts,” it said. fact specified by press release.
Over the same period, revenues increased slightly, from $1,808.6 billion in the first quarter of 2022 to $1,809.3 billion at the end of April.
The company attributed these results to the balance brought about by favorable pricing across all product lines, which offset “unfavorable sales mix of all-weather products and lower sales volume of seasonal products. due to supply chain disruptions.
In addition, BRP notes a 9% decline in retail sales of powersports products in North America for the first quarter of 2023, compared to the first quarter of 2022.
“Given our team’s ability to advance our strategic priorities and thanks to our agile management in this tight supply chain environment, we remain confident that we can deliver further strong results for the year. 2023, with expected revenue growth of 24% to 29% and normalized earnings per share growth of around 11% to 14%,” commented José Boisjoli, President and Chief Executive Officer.
