Models from BRP’s Can-Am Defender product line, like the Mossy Oak Hunting Edition shown here, helped increase their market share in the utility UTV segment and drive revenue in BRP’s Year-Round products unit.
BRP, maker of Can-Am side-by-sides, recently announced their second quarter financial results for fiscal year 2017. The quarter ended July 31, 2016 and the year ends January 31, 2017. Management reported revenues for the quarter to $856.1 million, an increase of 5.4% year over year. The increase was driven by higher wholesale in Year-Round Products, which includes ATVs, UTVs and the Spyder, and favorable exchange rates. Revenue from Year-Round products jumped 9% form $298.4 million to $326.3 million for the quarter. Gross profit increased 1.5% from $169.4 million to $172.0 million. For the first six months of the fiscal year revenue for Year-Round products increased from $696.5 million to $726.5 million. The following are some highlights from the earnings call related to the UTV market.
- North American UTV market ended the season up mid-single digits %
- The sport segment is down low teens % related to Polaris RZR issues, the crossover segment up mid-teens % and the utility/work segment up low teens %
- Can-Am retail was up mid-single digits %
- Can-Am Defender now the highest selling model in the Can-Am UTV line-up
- Defender is performing well in New Zealand, Australia and Western Europe as well
- Management is targeting on becoming the number 2 brand in the utility segment in two to three years
- New Defender models will look to address other subsegments of the utility segment
- Introduction of the Can-Am Defender and addition of new dealers increased dealer inventory but was offset by decreases in Commander and Maverick UTV inventory
- Can-Am renewed their sponsorship agreement with NASCAR for another two years
- The company introduced the new Maverick X3 side-by-side during the quarter
- Management increased their full year guidance for Year-Round products from 6% to 10% revenue growth to 8% to 12%