BRP posts the best earnings in its history: what you need to know

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Bombardier Recreational Products Inc., or BRP, based in Valcourt, Que., reported second-quarter net income of $237.7 million on Wednesday, up from a year ago, suggesting the manufacturer of Ski-Doo snowmobiles and Sea-Doo water scooters is gaining momentum as it prepares to introduce new electric motorcycles.

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“We delivered record results in the second quarter while continuing to advance our strategic initiatives,” CEO José Boisjoli said in a press release. “The agility and resilience of our team and the strength of our portfolio have enabled us to continue to deliver strong performance in this unique operating environment.

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Here’s what you need to know about BRP’s fiscal 2023 second quarter earnings, which end July 31, 2022.

Past

BRP plans to revisit part of its history, in a way. Although famous for its snowmobiles, the company also made award-winning two-wheeled motorcycles in the 1980s before it retired from that business. BRP announced its return to motorcycles on August 7 after a 30-year hiatus. This time, however, they are going green. “With the motorcycle industry shifting to electric, we saw an opportunity to reclaim our motorcycle heritage and re-enter the market,” Boisjoli said in a press release.

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The glow of nostalgia was quickly dimmed by a more modern threat. A few days later, the company suffered a cyberattack, which threw a veil over the announcement. The company said it « took immediate action to contain the situation. » In an Aug. 23 update, the company said employee and supplier information had been leaked onto the dark web, but added it had no evidence that customer information had been affected. .

BRP said it would provide credit monitoring services to all of its employees as a « precautionary measure. » The investigation is ongoing.

finance

Revenue reached $2.4 billion in the second quarter, up 28% from $1.9 billion in the year-ago quarter. This is the highest revenue the company has ever recorded in a single quarter in its history.

Diluted net earnings per share were $2.94, compared to $2.46 per share in the same quarter last year.

The company reported normalized EBITDA of $418 million in the second quarter, an improvement from EBITDA of $415 million in the year-ago quarter.

BRP shares were up nearly 9% on Wednesday morning from Tuesday’s close at $97.27 on the TSX.

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